Crypto Bloodbath: $2.24B Wiped Out in 24 Hours

Crypto Market Crashing: Record Sell-Off Overshadows LUNA and FTX Collapses

The crypto market has witnessed a massive sell-off, with over $2.24 billion wiped out in liquidations within a single day. Bitcoin plunged to $94,000, dragging the entire market into chaos. Ethereum traders suffered the most, with $609 million in liquidations, while Bitcoin followed closely with $412 million. XRP, Dogecoin, and Solana also saw significant losses. The biggest single loss occurred on Binance, with an ETHBTC trade worth $25.64 million liquidated. In total, 734,621 traders were wiped out in just 24 hours.

Altcoins have also been hit hard, with some down more than 80% from their peak. The CMC Altcoin Season Index has fallen to 38 out of 100, indicating that Bitcoin is now dominating the market, while traders are avoiding riskier altcoins. The crypto market is currently in a state of shock, with Bitcoin's price hovering around $94,000. If Bitcoin can stay above $92,000, there is hope for a recovery. However, if it falls below this level, a further drop to $83,000 is possible, which could cause even more liquidation and fear.

The market meltdown follows President Donald Trump's decision to impose new tariffs on Canada, Mexico, and China. The 25% tariff on Canadian and Mexican imports, along with a 10% tariff on Chinese goods and Canadian energy, has sparked global economic concerns. However, analysts argue that this could be beneficial for Bitcoin in the long run. Jeff Park from Bitwise Asset Management believes these tariffs could push Bitcoin higher, linking it to the Triffin dilemma, where the US dollar's status as the global reserve currency creates trade imbalances. With a weaker dollar and declining interest rates, Bitcoin could emerge as a safe haven, attracting more investors amid economic instability. While the short-term impact has been brutal, some believe Bitcoin's long-term prospects remain strong as they see this as an opportunity.