Bitcoin experienced a sharp decline, plummeting from $83,000 to $74,000 overnight, which resulted in over $1.36 billion in liquidations across the digital asset markets.
This steep downturn was triggered by rising trade tensions, following an announcement from U.S. President Donald Trump regarding comprehensive tariffs on nearly all major trading partners late Friday.
Within a 24-hour window, more than 441,000 traders faced liquidation, with long positions making up $1.21 billion of that total. Bitcoin alone accounted for $401.31 million in long-side liquidations, while Ethereum added $341.82 million to the tally.
The largest single liquidation order, amounting to $16.38 million, took place on Bitfinex’s perpetual contract. The five assets with the highest liquidation volumes included BTC, ETH, SOL, XRP, and DOGE.
This movement also lined up with overall market instability, as S&P 500 futures dropped by 10% over the weekend, after consecutive daily losses exceeding 4% on Thursday and Friday, marking one of the steepest two-day declines ever for the index.
The liquidation heatmap highlights intense pressure on Bitcoin and Ethereum; however, altcoins like XRP, SOL, and DOGE also endured notable downturns.
In the past 24 hours, BTC’s price dropped by 10.25%, ETH declined by 19.84%, and many major altcoins suffered double-digit losses. The data indicates that the sell-off was skewed towards long positions, with short liquidations remaining relatively low.
This pullback comes after Bitcoin’s recent peak, which soared above $109,000 in January following Trump’s reelection and inauguration. It has now retraced to levels last seen during the Biden administration.
Bitcoin currently faces a strong resistance point around $73,000, which I previously suggested could serve as a local bottom for a sustained bullish trend. Nevertheless, the global pressures and unprecedented tariffs have introduced a black swan event that no technical analysis could have predicted.
As geopolitical tensions escalate, digital asset markets are recalibrating risk alongside traditional equity markets.
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