Crypto Markets Reel from $800M Liquidation Wave Amidst Renewed US-EU Trade War Fears
The cryptocurrency market faced a turbulent overnight, experiencing a staggering $800 million in leveraged positions wiped out. This sharp selloff was ignited by escalating trade tensions between the United States and the European Union, underscoring the digital asset sector's unexpected vulnerability to global macroeconomic headwinds.
Trade War Ignites Market Carnage
Renewed threats of 2026 tariffs targeting European markets sent shockwaves through the crypto ecosystem, causing Bitcoin and major altcoins to swiftly surrender recent gains. The sheer volume of liquidations, with over $768 million in long positions alone, indicates that many traders were positioned for a continued uptrend, only to be caught off guard by the sudden downturn. Notably, exchanges like Hyperliquid and Bybit recorded the largest shares of these forced closures, with $241 million and $220 million respectively. This episode powerfully demonstrates that despite its perceived independence, the crypto market can behave like traditional high-beta risk assets when macro uncertainty surges.
Bitcoin's Fragile Hold and Future Volatility
Market analyst Darkfrost cautions that the opening of CME trading often acts as a significant volatility trigger, especially when markets are already fragile and leverage is high. The immediate hours are deemed critical, with the potential for further cascading liquidations if US markets resume with renewed selling pressure, which could particularly impact vulnerable altcoins. Bitcoin is currently attempting a fragile rebound, trading near $93,100 after being rejected from the $96,000-$97,000 supply zone. The flagship cryptocurrency continues to struggle below key moving averages, suggesting the recent upside is a bounce rather than a confirmed trend reversal. Persistent selling into strength, evidenced by recent candle wicks, highlights market hesitation. While the long-term moving average near $90,000 offers potential support, Bitcoin must decisively break and hold above resistance levels to signal a broader bullish continuation and pull the wider altcoin market out of its current fragile stabilization phase.
