Tariff Shock Erases $140B From Crypto, Liquidations Rise to $500M (Market Watch)

Bitcoin BTCUSD's surge above $88,000 was suddenly halted after Donald Trump's recent tariffs, triggering a steep decline of more than $6,000 in hours.

BTC Dumps by $6K

Bitcoin's performance over the weekend was poor, not managing to break $84,000 and instead falling towards $81,000 on Sunday night and Monday. After establishing a multi-day low, BTC rallied back to $84,000, but resistance was too great.

Higher volatility came into play on Tuesday, as Bitcoin surged from $82,400 to $85,500 in hours. However, the cryptocurrency saw a flash crash to $81,200 on Bitstamp before recovering.

Yesterday, Bitcoin BTCUSD jumped to a seven-day high of $88,500 on speculation surrounding Donald Trump's policies. But panic selling ensued. following the announcement of fresh tariffs against several nations, cutting BTC's price more than $6,000 to just above $82,000 within minutes.

Since then, Bitcoin stabilized above $83,000, although its market capitalization fell to $1.65 trillion, while its dominance against altcoins remained close to 60%, based on CoinGecko.

Alts Turn Red, Again

Major altcoins tracked Bitcoin's volatility with major rejections and price dips. Some of the worst-hit large-cap assets:

Toncoin (TON), Avalanche (AVAX), and Solana (SOL) fell as much as 6% intraday and more than 10% from their recent highs.

Ether (ETH), XRP, Dogecoin (DOGE), Cardano (ADA), Stellar (XLM), and Chainlink (LINK) fell too, but less precipitously.

HYPE (-10%), Crypto.com's CRO (-11%), and PI (-7.5%) fared even worse.

The overall crypto market cap has lost around $140 billion from yesterday's high, falling to $2.765 trillion, as per CoinGecko.

$500M Liquidations as Traders Get Wrecked

The increased volatility has liquidated close to $500 million in overleveraged positions, with longs taking the lead ($260 million). Statistics from CoinGlass indicate that close to 160,000 traders have been liquidated within the last 24 hours.

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