The cryptocurrency market has experienced significant turmoil recently, leading to massive liquidations of long positions. In just a single day, approximately $790 million in crypto longs were wiped out as Bitcoin’s price dropped to $93,000.
Recent Crypto Market Liquidations
According to data from CoinGlass, the crypto sector faced a total of $874 million in liquidations over the last 24 hours. Long contracts accounted for a staggering $788 million of this amount, highlighting the volatility of the market.
Price Movements Triggering Liquidations
Bitcoin plummeted from $95,500 to a low of $93,000, while Ethereum fell from $3,350 to $3,200. The swift price drops, rather than their percentage terms, are what triggered this wave of liquidations.
- Bitcoin: Dropped to $93,000
- Ethereum: Fell to $3,200
External Factors Influencing Market Instability
The recent downturn appears to be linked to escalating trade tensions between the US and EU. Reports suggested that President Donald Trump announced tariffs on eight European nations, effective from February 1st. Goods from Denmark, Great Britain, Norway, Sweden, France, Germany, the Netherlands, and Finland will incur an additional 10% import tariff.
If the US does not gain rights over Greenland, these tariffs could increase to 25% by June 1st, 2025. Such tariff-related uncertainties have historically impacted the cryptocurrency market, contributing to its volatility.
Detailed Liquidation Breakdown
Data shows that Bitcoin account for a significant portion of the liquidations in the last day, with around $233 million. Ethereum followed with $156 million. Furthermore, notable liquidations were also observed among altcoins:
| Cryptocurrency | Liquidation Amount |
|---|---|
| Solana (SOL) | $61 million |
| XRP | $41 million |
| Dogecoin | $35 million |
Despite having a smaller market cap, Solana’s larger percentage drop of 6% contributed to its higher liquidation figure compared to XRP’s 4% drop.
Current Market Status
After the sharp decline, Bitcoin has seen a minor rebound in price, currently sitting at approximately $93,100. The market remains highly sensitive to external influences, and investors are advised to proceed with caution.
