TL;DR

The crypto market lost more than 507 million dollars in liquidations following Donald Trump’s announcement of new tariffs.
Over 176,000 traders were liquidated, with Bitcoin and Ethereum being the most affected cryptocurrencies.
Despite the crash, many in the crypto sector view this as a long-term opportunity amid growing instability from traditional economic policies.

The recent announcement of new reciprocal tariffs by Donald Trump triggered a sharp reaction in global financial markets, including the crypto space. In just 24 hours, a total of 176,979 traders were liquidated, leading to losses amounting to 507.34 million dollars, with 290.41 million coming from long positions and 216.93 million from shorts. The largest single liquidation occurred on Binance, in the ETHUSDT pair, with a value of 11.97 million dollars.

These sudden tariffs, aimed primarily at protecting key domestic industries and gaining leverage in sensitive international trade negotiations, injected fresh uncertainty into the broader financial landscape. While traditional equity markets reacted with notable caution and hesitation, the crypto market — known for its higher volatility — experienced a cascade of liquidations, especially in highly overleveraged positions tied to Bitcoin and Ethereum. Many seasoned analysts believe this sudden shake-up also reveals how incredibly fragile investor sentiment remains in times of unpredictable, policy-driven turbulence, particularly in risk-on asset classes like crypto.

Cryptocurrencies Hit Hard… But Still Standing Strong

Bitcoin took the heaviest hit, with 176.86 million dollars in liquidations. Its price dropped to $83,164.95, marking a 1.77% loss over the past 24 hours. Ethereum followed with 91.18 million in liquidations, now trading at $1,798.46  after a 3.86% daily decline.

XRP also fell, down 4.61% to $2.02, while BNB showed some resilience, dipping just 1.24% to $593.45. Solana suffered a steep 7.92% drop to $116.08, closely followed by Dogecoin, which fell 7.02% to $0.1601. Cardano also posted a significant decline of 5.66%, settling at $0.6413, and TRON lost 2.84%, now priced at $0.2316.

Despite these losses, the crypto community remains optimistic. The core technological fundamentals remain intact, blockchain continues to offer a disruptive solution to financial centralization, and institutional adoption has not slowed down. Many analysts compare this cycle with past market patterns, noting similarities throughout. This drop, although painful for overexposed traders, is seen as a natural correction that clears out speculative excess and strengthens the market’s long-term foundation.

 

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Filed under: News - @ April 3, 2025 12:29 pm