
In the past 24 hours, the cryptocurrency market has witnessed a staggering liquidation of over $2.24 billion, driven by increased geopolitical tensions related to the global tariff conflict. At the forefront of this financial upheaval is Ethereum (ETH), which accounted for liquidations exceeding $609.9 million in both long and short positions. The overall impact was felt by over 730,000 traders.
The largest single liquidation order, valued at $25.6 million, occurred on Binance for an ETH/BTC trading pair, as reported by CoinGlass data. Binance emerged as the leading platform in facilitating these liquidations, constituting 36.8% of the total due to its extensive user base. Other platforms such as OKX, Bybit, Gate.IO, and HTX also saw significant liquidation activity.
Long traders bore the brunt, losing approximately $1.88 billion, which amounts to 84% of the total liquidations, underscoring misplaced expectations of an imminent market rally. This wave of liquidations coincides with notable drops in major altcoins like ETH and Cardano (ADA), following the announcement of new tariffs on imports from China, Canada, and Mexico by former U.S. President Donald Trump.
Analyst Joe Consorti highlighted that the $2.24 billion liquidation event outstripped previous significant market disruptions triggered by the COVID-19 pandemic and the collapse of FTX. Currently, the crypto market is gripped by a sentiment of ‘fear,’ as per the Alternative.me index, suggesting growing investor anxiety. Historically, such intense fear has often been seen as a potential buying opportunity for investors.