Crypto Market Shaken: Nearly $800 Million in Longs Liquidated as Bitcoin Dips
The cryptocurrency market has faced a turbulent 24 hours, witnessing a staggering wave of liquidations as Bitcoin and major altcoins experienced sharp price corrections. Derivative traders holding long positions bore the brunt of this volatility, with hundreds of millions wiped out in forced closures across various exchanges.
Unprecedented Liquidation Event
According to data from CoinGlass, the past day saw a total of $874 million in cryptocurrency liquidations, with an overwhelming $788 million stemming from long contracts. This indicates a significant number of traders betting on rising prices were caught off guard by the sudden market downturn. While volatility is a common feature in the digital asset space, the rapid nature of these price movements was the primary catalyst for such extensive liquidations. Bitcoin led the charge in this downturn, seeing its price tumble from approximately $95,500 to a low of $93,000. Ethereum also experienced a notable drop, moving from $3,350 to $3,200. Beyond the top two, other altcoins registered substantial liquidations: Solana accounted for $61 million, XRP for $41 million, and Dogecoin for $35 million. Solana's higher liquidation volume compared to XRP, despite its smaller market cap, is attributed to its steeper 6% price plunge versus XRP's 4% drop.
Geopolitical Tensions Fuel Market Uncertainty
The broader market crash is potentially linked to rekindled US-EU tariff tensions. Reports indicate that former President Donald Trump recently vowed to implement tariffs on eight European nations, commencing February 1st. Goods from countries including Denmark, Great Britain, Norway, Sweden, France, Germany, the Netherlands, and Finland could face an additional 10% import tariff, escalating to 25% by June 1st if the US is denied the acquisition of Greenland territory. Such geopolitical developments often spill over into financial markets, and the crypto sector, having previously reacted to similar tariff uncertainties in 2025, appears to be particularly sensitive to these macroeconomic shifts. Bitcoin-related contracts accounted for a disproportionate share of the recent liquidations, highlighting its central role in broader market sentiment.
