Bitcoin experienced a significant drop overnight, falling from $83,000 to $74,000, resulting in over $1.36 billion in liquidations across digital asset markets, as reported by Coinglass.
The sudden correction came as trade tensions escalated, with U.S. President Donald Trump announcing sweeping tariffs on almost all major trading partners late on Friday. This news had a ripple effect on the market, leading to a cascade of liquidations totaling more than $1.36 billion.
Over 441,000 traders were liquidated within a 24-hour period, with long positions making up $1.21 billion of the total. Bitcoin alone saw $401.31 million in long-side liquidations, while Ethereum contributed $341.82 million. The largest single liquidation order, valued at $16.38 million, occurred on Bitfinex’s perpetual contract. The top five assets by liquidation volume included BTC, ETH, SOL, XRP, and DOGE.
The market turmoil extended beyond the digital asset space, with the S&P 500 Futures Index ER witnessing a 10% drop over the weekend. This followed consecutive daily losses of over 4% on Thursday and Friday, marking one of the sharpest two-day declines in index history.
The liquidation heatmap indicated concentrated pressure on Bitcoin and Ethereum, although altcoins like XRP, SOL, and DOGE also saw significant drawdowns. BTC’s price fell by 10.25% over 24 hours, while ETH experienced a 19.84% decline. Most major altcoins posted double-digit losses, suggesting that the sell-off was primarily driven by long positions.
Despite the recent pullback, Bitcoin had shown strength earlier in the year, reaching above $109,000 in January following Trump’s reelection and inauguration. However, the current situation has reversed the gains, bringing the price back to levels last seen under Joe Biden’s administration.
Bitcoin now faces a strong resistance level around $73,000, which some analysts believe could serve as the local bottom for a sustained bull run. However, the geopolitical tensions and unforeseen tariffs have introduced a black swan event that defies traditional technical analysis.
As global pressures mount, digital asset markets are now aligning their risk assessments with traditional equities. This shift in sentiment underscores the interconnected nature of financial markets and the impact of geopolitical events on asset prices.