Trump's Crypto Reserve Plan Sparks $330B Surge, $960M Liquidations

On March 2, the cryptocurrency market witnessed a significant surge in value, gaining approximately $330 billion following U.S. President Donald Trump's announcement of plans for a national crypto reserve. According to CoinMarketCap data, the total market capitalization surged by around 10% to a high of $3.15 trillion from $2.83 trillion, before slightly retracing to $3.02 trillion as of press time.

The rapid rally, however, came at a cost, with over $960 million in liquidations occurring within a day. Coinglass data revealed that short traders betting against price increases suffered the most, with liquidations totaling over $549 million. Long position holders also faced heavy setbacks, with liquidations amounting to $412 million.

Across various assets, traders betting on Bitcoin prices were liquidated for $348 million, while speculators on Ethereum prices lost more than $180 million. Additionally, traders speculating on the prices of other digital assets like XRP, Solana, and Cardano suffered losses of more than $220 million during the reporting period.