Ethereum's $2.3B Liquidation Storm: Crypto Market Turmoil Amid Geopolitical Uncertainty

Crypto Market Turmoil: Ethereum Leads $2.3 Billion Liquidation Storm Amid Geopolitical Uncertainty

The crypto market experienced a significant downturn on Monday, with Ethereum (ETH) leading the charge in a $2.3 billion liquidation storm. The decline was exacerbated by geopolitical tensions, particularly U.S. tariff changes, which impacted investor sentiment across the asset class.

Ben Zhou, co-founder of Bybit, estimated that the real total liquidation across the crypto market could exceed $8 billion, reflecting a broader market condition of uncertainty. This article explores the recent volatility in Ethereum's price and its implications for the broader crypto market, highlighting significant liquidations and market sentiment.

Ethereum, the second-largest cryptocurrency by market cap, witnessed an alarming downward movement, trading at a low of $2,368 on Monday. This decline marked a staggering 17.8% drop in a single day, largely driven by external pressures including new U.S. tariffs instituted by President Trump. The aftermath was swift and harsh, with the crypto market experiencing over $2.3 billion in liquidations across 738,000 traders within 24 hours, highlighting the volatility that has returned to the crypto space.

Data from CoinGlass revealed that long traders faced the heaviest consequences, incurring losses totaling $1.9 billion and representing 84% of the overall liquidations. Within this framework, Ethereum long positions were hit particularly hard, amounting to $473 million of the total liquidations. Min Jung of Presto Research underscored that Ethereum's performance has deviated significantly compared to other major cryptocurrencies, such as Bitcoin and Solana, depicting a market trend that appears increasingly unfavorable for ETH holders.

An analysis of the broader environment indicates that the crypto market's turbulence is intertwined with current geopolitical dynamics, notably Trump's tariff announcements. The implementation of 25% tariffs on imports from Canada and Mexico, alongside a 10% tariff on China, could signal inflationary pressures that complicate the fiscal landscape. Jack Tan, a co-founder of crypto exchange WOO X, emphasized that these conditions render crypto assets less effective as short-term hedges against market volatility.

As Ethereum faced its largest single-day