Crypto Liquidations Hit $976 Million as Market Reacts to Global Trade Tensions and Equity Sell-Off
Market chaos triggered shockwaves across digital and conventional financial markets, so according to Coinglass data, crypto liquidations jumped to an incredible $976 million in under 24 hours. Long holdings accounted for most of these liquidations—$842.2 million—emphasizing the degree of bullish expectations that a sharp and unanticipated drop quickly destroyed.
Bitcoin led the decline over the weekend, plunging more than 6% to $77,730, below the important $78,000 support level it had maintained for weeks. This decline followed US President Donald Trump’s declaration of fresh tariffs, which set off concerns of a growing worldwide trade conflict. U.S. stocks fell the most weekly since 2020, pulling down digital assets down with them.
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Technology shares have suffered especially badly in the worldwide sell-off; Bitcoin, once hailed as a hedge against market volatility, is now indicating more correlation with these assets. In March, analysts noted a 0.88 correlation between Bitcoin and significant US indices including the Nasdaq and S&P 500. Wall Street’s steep fall reflected the fall in Bitcoin’s price, hence that trend appears to be continuing.
Contributing to the significant losses throughout the cryptocurrency market, Ethereum dropped 13% to $1,568, XRP over 12%, and Solana over 12% to $105.43. The fast drop has created a wave of forced liquidations impacting more than 318,000 traders and has added more price decline pressure.
The domino effect extended beyond the United States. The largest single-day decline since the 2008 worldwide financial crisis, Hong Kong’s Hang Seng index fell more than 10% in Monday morning trading. Chinese stocks, meanwhile, plummeted when the US imposed more than 50% tariffs, which drove Beijing to respond with new taxes on imports from America. Rising tensions have caused organisations like Goldman Sachs to increase their US recession chances to 45% over the next twelve months.
Not everyone is panicking despite the turmoil. Long-term view from Xapo Bank investment manager Gadi Chait: “These price fluctuations could disturb speculators, but in the end, this is only noise. Always a long-term investment, Bitcoin’s value is in its natural sovereignty, decentralisation, and finite character, not in short-term volatility.
The crypto futures market still, however, reflects anxiety and uncertainty. Coinglass’s documented crypto liquidations point to a significant deleveraging happening. Traders are now closely monitoring the $76,600 support level. A fall below that could indicate more issues for bulls and maybe pave the way for more negative action.
Experienced investors view these declines as normal in the erratic cryptocurrency scene even as some panic. The larger perspective is that this is a transient shakeout—common in bull markets—before the next step higher.
Bitcoin is still in a larger range for the time being, but events this week have surely challenged investor confidence. What comes next in macroeconomics and cryptocurrency market mood will determine whether this moment will be remembered as a strategic buying opportunity or a harsh correction.
