Crypto Market Volatility Leads to $450 Million in Liquidations
Market volatility led to $450 million in crypto futures liquidations over the past 24 hours as U.S. tariffs were implemented.
- President Trump imposed a 25% tariff on auto imports and at least a 10% tariff on all exporters to the U.S.
- China faces a 50% tariff increase on several goods and a 26% fee on some Indian products.
- U.S. indices and cryptocurrencies lost gains from the previous three days, with Asian markets declining.
- Gold reached a record high, while U.S. 10-year Treasury yields dropped to their lowest in over five months.
- Bitcoin peaked above $87,000, with ether (https://holder.io/coins/eth/) and XRP (https://holder.io/coins/xrp/) trading above $1,900 and $2.15 respectively.
- However, crypto majors fell up to 5% from Wednesday's highs, with bitcoin dropping to just above $83,500 and ether around $1,800.
- The liquidations included over $230 million across bullish and bearish positions, with BTC futures accounting for over $172 million and ETH futures for $120 million.
- Liquidation occurs when an exchange closes a trader's leveraged position due to insufficient funds to maintain the trade.
- Large single-sided liquidations can indicate market tops or bottoms, but Thursday's situation reflects market uncertainty.