Bitcoin's Wild Ride: $527M in Crypto Liquidations Amid China-US Trade Tensions

Bitcoin's Price Volatility and China's Trade Actions Impact Crypto Markets

Bitcoin (BTC), the world's leading digital currency, has experienced significant price volatility in recent days, with the coin struggling to maintain stability above the psychological $100,000 level. This price action has resulted in a combined $527 million in crypto liquidations over the past 24 hours, according to CoinGlass data.

Long position traders suffered the most, with $92.12 million in liquidations, compared to $69.84 million for short position traders. This imbalance indicates that traders betting long on Bitcoin faced higher losses as BTC failed to stay above $100,000.

Bitcoin's liquidation and price movements have also impacted other major altcoins. Ethereum (ETH), XRP, Dogecoin (DOGE), and Solana (SOL) contributed to the total liquidation of $527 million, with long position traders generally suffering more losses than short position traders.

As of this writing, Bitcoin is witnessing a rebound, trading at $98,835.08 after a 4.01% rally in 24 hours. However, Bitcoin's trading volume has dropped by 21.4% to $79.92 billion, suggesting tempered investor sentiment.

In the broader crypto market, Bitcoin and other digital assets faced renewed selling pressure on Tuesday as global trade tensions intensified. The U.S. imposed 10% tariffs on Chinese goods, prompting China to retaliate with an anti-trust investigation into Google and new tariffs on coal, crude oil, and farm equipment. BTC initially rebounded to $100,000 but quickly dropped to $98,000 following China's countermeasures.

Market experts warn of potential corrections for Bitcoin if the broader economic landscape deteriorates. Ryan Lee, chief analyst at Bitget Research, noted that heightened volatility in traditional markets could either push investors to Bitcoin as a hedge or cause a sell-off in risk assets. Despite these risks, Bitcoin remains on track with historical cycles, up 525% since the FTX collapse and moving within a channel between $90,000 and $109,000.