The global crypto market saw heavy losses on Monday after the tariffs announced by United States President Donald Trump rattled the markets. Ethereum saw the heaviest loss, seeing an intraday drop of 27% to hit $2,300, a level that it last tested in May 2021.
Bitcoin also slightly declined, dropping by 7% to hit $92,000, while other altcoins saw deeper drops. The drop pushed traders to hit the liquidation, with about $2 billion worth of liquidations already made in the market. The entire crypto market cap also dropped, moving to $3.12 trillion, representing an 8% loss in the last 24 hours.
Long bets worth $1.89 billion wiped out
According to data shared by CoinGlass, more than 746k traders suffered liquidations as the market suffered a severe decline. According to the reports, the cumulative short and long positions currently stand at $2.27 billion, with the biggest liquidation involving ETH/BTC on Binance with a value of about $25.64 billion. The data also showed that 83% of liquidated bets worth $1.89 billion were long bets. This suggests that traders were hoping that the assets were going to ride on the wave of Donald Trump’s arrival.
However, the fear and greed index has moved to fear among traders. Trump‘s tariffs are affecting the market amid fears of trade wars and stagflation affecting traders’ risky assets, including the crypto market. The selloff is a stark reversal from the previous market rally that enveloped the market when he was declared the winner of the election. The sentiment had also been raised by his pro-crypto statements and executive orders toward a crypto stockpile.
Bitcoin bulls suffer crushing fate
Bitcoin has suffered immense pressure from the announcements and fed meetings, coming after the asset saw a jump to the $109,000 milestone. Over the last seven days, bitcoin has suffered a drop of 7%, seeing an 8% drop in the last 60 days. Traders who predicted the biggest rise saw liquidations of over $418 million in the last 24 hours.
The second digital asset Ethereum was also not spared, dropping into the $2,300 zone. The asset dropped by 15% in the past 7 days and 27% over the last 30 days. On the last day, the asset saw liquidations worth $618 million. About 77% of the liquidations, worth $480 million, were long positions. Traders were expecting the token to undergo a surge, but the price dropped by 17% in the past 24 hours. ETH is trading at $2,596 at press time.