"Crypto Market Turmoil: $1.09B Liquidations as Trump Tariffs Shake Investor Confidence"

Coin WorldTuesday, Mar 4, 2025 10:47 am ET

1min read

The crypto market is in turmoil, with over $1.09 billion in liquidations following the shock of President Trump's tariff announcements. The market has been volatile, with investor confidence waning and selling pressure increasing. Bitcoin and major altcoins have lost significant value, erasing recent gains and heightening investor fears. The market's instability is forcing traders to adjust their strategies quickly.

In the past 24 hours, the crypto market has witnessed a wave of liquidation, with over $1.09 billion in liquidations. This market chaos has been caused by a variety of reasons, but President Trump's trade tariffs are creating the biggest turmoil. The tariffs on Canada and Mexico are going into effect today, and risk assets are losing investors once again. Today's wave of liquidation was accompanied by massive drops in cryptocurrencies' value. Bitcoin lost 10% of its value, while big altcoins, including ETH, XRP, SOL, and ADA, lost between 15% to 25%.

Bitcoin has had the biggest liquidation among cryptocurrencies, suffering more than $400 million of the $1.09 crypto liquidation surge. Additionally, the crypto market has also lost $460 billion in market cap in the last 24 hours. According to The Kobeissi Letter, this caused a $19.1 billion loss in market cap per hour in the past day.

Before today's explosive downturn, the markets were experiencing a hopeful surge following the announcement of a crypto reserve on Sunday. Although President Donald Trump's announcement energized the market over the weekend, all the gains were wiped out after today's crash. On the weekend, BTC even reached $94,000, but today, it is trading at nearly $84,000. BTC's trading volume saw a 15% increase today, reaching $77 billion and increased selling pressure. If this trend continues, Bitcoin can fall into the $75,000 range before starting a recovery.

Arthur Hayes, the former BitMEX CEO, reaffirms this view while remaining positive about BTC's performance. While suggesting that Bitcoin's bull cycle can continue, he mentioned in the worst-case scenario, BTC could bottom at $70000. KALEO, a crypto commentator, also

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