The cryptocurrency market saw a liquidation of over $1 billion as traders faced heavy losses following a sudden market slump. Coinglass data showed that over 87% of the cleared positions are long bets, with Bitcoin alone accounting for $370 million in liquidation. The sale saw a shockwave across financial markets following the US president’s announcement of 25% tariffs in Canada and Mexico, with the S&P 500 falling nearly 2% in early trading.
Bitcoin, which rose to around $93,000 on March 3, plummeted to around $82,000 after tariff news broke. Other cryptocurrencies, including Ethereum and Solana, also suffered heavy losses, with Ethereum down 10% and Solana down 15%. The broader crypto market capitalization fell by 8%, erasing its value of around $300 billion. Coinglass data showed that roughly 300,000 traders have been liquidated in the last 24 hours, with the largest single liquidation order being $13.4 million, executed on Bitfinex.
The recession marked a tough day-on-day reversal, when the market rose by $350 billion, in response to Trump’s statement on March 2nd on the creation of US crypto sanctuaries. He announced plans to hold assets such as Bitcoin, Ethereum, XRP, Solana and Cardano, fostering optimism among traders. However, the tariff movement led to rapid sales, wiping away those profits. Analysts noted that macroeconomic factors, including the risk of a trade war, outweigh industry developments, including the firing of a Securities and Exchange Commission (SEC) lawsuit against crypto companies in February.
Bitcoin prices have fallen since its all-time high of $108,786 in January. After the first surge after Trump’s election victory, Bitcoin was already below $80,000 by the end of February, representing a 26% decline. The latest decline has fueled further concern among investors regarding market stability. Open interest in Bitcoin’s price measures has declined by 12% over the past 24 hours, suggesting that traders are becoming more clear before further moves.
Market Analyst Ki Young Ju, CEO of Cryptoquant, said the Bitcoin Bull Cycle remains intact despite the recession. He noted that on-chain activity is neutral, the foundation is strong, and more mining rigs are offered online. He also suggested that the slowdown could continue until feelings in the US market improve.
Altcoins such as XRP, Solana and Cardano, which previously benefited from the announcement of Trump’s crypto sanctuary, have experienced major losses in liquidation of more than $150 million. Inventory has also been affected, with major players like Nvidia and Tesla down significantly, indicating a broader shift from risky assets. Traders are still cautious as uncertainty continues to shape market movements.