The cryptocurrency market has experienced a significant decline in the past 24 hours, with the market cap dropping by 2.19% to $2.79 trillion. This is due to macroeconomic pressure, regulatory uncertainty, and increased liquidations.
Macroeconomic Pressure on the Crypto Market
The latest downturn in crypto prices aligns with broader economic concerns. The US government's decision to impose a 25% tariff on auto imports and other goods from Canada, Mexico, and China has sent shockwaves across global financial markets. Investors fear that the escalating trade war could weaken risk sentiment, leading to a pullback in speculative assets like cryptocurrencies.
Liquidations and Their Impact on the Market
Overleveraged traders bore the brunt of the sell-off, with total liquidations amounting to $257.35 million. Of this, $198.11 million were long positions, indicating significant losses for traders betting on price increases. Bitcoin saw $62.45 million in liquidations, with $48.94 million stemming from longs. Ethereum also suffered heavily, witnessing $43 million in long liquidations out of a total of $51.76 million.
Bitcoin and Altcoins Face Depreciation
Bitcoin has dropped by 1.68% in the past 24 hours, bringing its price to $85,931.61. The asset remains under pressure as market sentiment deteriorates, with Bitcoin's dominance still holding at over 61% of the total market cap. Ethereum followed suit, falling 5.44% to $1,915.94, reflecting a stronger sell-off among top altcoins. Other major cryptocurrencies like XRP and Solana have also recorded significant losses of 4.68% and 3.73%, respectively.
Despite the overarching bearish market sentiment, some tokens like Cronos, Toncoin, and Pi Network have shown gains. This suggests that even in a global downturn, exceptions exist. However, major tokens such as Ethereum and Solana remain at high risk due to macroeconomic factors and regulatory uncertainty.
