Crypto liquidations drive historic market turbulence

Crypto prices experienced a drastic plunge, resulting in more than $19 billion in liquidations, with $16.8 billion from long positions alone. The decentralized trading platform Hyperliquid was notably affected, seeing $10.3 billion in liquidations. Bitcoin's price dipped to as low as $104,000 but has since recovered to around $112,200. The overall crypto market cap fell by 9% in the past day. The liquidations highlighted crypto's heightened interconnectedness with global politics, particularly stemming from US-China trade tensions escalated by statements from President Donald Trump. Trump's plan to impose tariffs and restrict access to critical software underscored the vulnerability of crypto markets despite previous favorable policies towards the industry. As over 1.6 million traders were liquidated, comparisons were drawn to past significant events like the Tether/Luna and FTX collapses, leading to uncertainties about the future market direction. The coming days will determine the extent of the fallout and its implications for publicly traded crypto firms.

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