Bitcoin Crash and Liquidation Spark Massive Crypto Selloff as Market Faces $1.36B in Losses
As “Black Monday” saw more than $1.36 billion wiped in under 24 hours, Bitcoin crash and liquidation news shook the crypto universe. Led by Bitcoin (BTC), which fell below $77,000 before reaching a near $75,000 low, this significant decline set off a chain reaction of forced liquidations across leveraged positions.
Shedding about 13% in total market cap, the digital asset market went through one of its most severe corrections yet. The upheaval was not unique; worldwide equities markets fell in lockstep as U.S. President Donald Trump’s harsh “Liberation Day” tariff policy raised concerns of a worldwide economic downturn.
CoinGlass estimates that more than $1.2 billion in long futures positions were forced liquidated, with Bitcoin longs alone losing $392 million. Though the unanticipated extent of the collapse surprised many and exchanges started setting off large margin calls, traders had mostly wagered on a short-term recovery. All significant crypto assets felt shockwaves from this fast unravelling.
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Ether (ETH) plunged 20% to a low of $1,449, while Solana (SOL), XRP, and Dogecoin (DOGE) each witnessed drops of around 20%. Altcoin liquidations added $400 million to the total losses. Even BNB fell 10% in the chaos.
Market watchers saw that more than 86% of traders were long, betting on a bullish recovery. The decline turned into a liquidity trap as leverage accumulated. To make up for margin shortfalls, exchanges had no option but to aggressively sell assets, hence aggravating the downward pressure and increasing the market volatility.
The Bitcoin meltdown and liquidation event evoked comparisons with conventional finance markets. Sunday night, U.S. market futures fell sharply: S&P 500 down almost 6%, Nasdaq 100 down 6.2%, and the Dow Jones down 5.5%. ( With Jim Cramer of CNBC likening the synchronised selloff to the notorious 1987 crash, it mirrored past declines.
Asia reflected the mayhem. Japan’s Nikkei 225 fell 8.9%, Taiwan’s Taiex fell 10%, and circuit breakers were activated across key TSMC-related companies. Local governments started prohibiting short-selling to stabilise their financial systems in reaction.
Both retail and institutional investors rushed for safety. In only two and a half hours on Friday, a record $1.5 billion was withdrawn from equity markets. Institutional exits increased the market pressure, hence making March 2025 one of the most severe withdrawal times since the COVID disaster.
Wall Street had lost $11 trillion in value since mid-February by April 6; April 4 alone saw an incredible $3.25 trillion disappear—more than the whole crypto market’s valuation, which was $2.68 trillion.
The “Magnificent 7” tech behemoths were not exempt: Apple plummeted 7.29%, Nvidia down 7.36%, and Tesla fell 10.42%, all aggravating investor worries.
Although liquidations of this magnitude can signal times of great hardship, they can also offer chances. Analysts say that such wipeouts remove overleveraged positions, hence possibly preparing the ground for future recoveries when confidence and purchasing power return.
Both crypto and conventional markets are still on edge for the time being; volatility is projected to continue as world economic policy and investor mood clashes.
