The crypto market recently experienced one of its most severe crashes, wiping out over $2.24 billion in a single day, surpassing the LUNA and FTX crises.
Massive Liquidations Hit the Market
Bitcoin plunged to $94,000, negatively affecting the entire market and leading many traders into bankruptcy. Ethereum traders suffered the most with $609 million in liquidations, followed by Bitcoin traders with $412 million. In total, 734,621 traders were wiped out in 24 hours, with the largest single loss recorded on Binance, where an ETHBTC trade worth $25.64 million was liquidated.
Altcoins in Free Fall
Altcoins like XRP, Dogecoin, and Solana also saw over $85 million in forced liquidations. The CMC Altcoin Season Index dropped to 38 out of 100, indicating Bitcoin's dominance over the market.
Trump's Tariffs: An Opportunity for Bitcoin
The market downturn coincided with President Donald Trump's decision to impose new tariffs on imports from Canada, Mexico, and China, sparking global economic concerns. However, analysts argue this could benefit Bitcoin in the long run. Jeff Park from Bitwise Asset Management believes these tariffs could push Bitcoin higher due to associated trade imbalances and a weakening dollar.
The crypto market is seeing troubling fluctuations, but experts remain hopeful for recovery and potential profits amid current instability.
