The crypto market just experienced one of its worst crashes ever, with $2.24 billion in liquidations within a single day. This collapse even surpasses the infamous LUNA and FTX crashes, making it a historic moment for the industry. Bitcoin plunged to $94,000, pulling the entire market down and leaving leveraged traders in heavy losses.
The massive sell-off has broken records, marking one of the most devastating days in crypto history.
Ethereum traders suffered the most, with $609 million in liquidations, followed by Bitcoin at $412 million. Major altcoins like XRP, Dogecoin, and Solana also saw over $85 million in forced liquidations. The biggest single loss happened on Binance, where an ETH/BTC trade worth $25.64 million was wiped out. In total, 734,621 traders were liquidated within just 24 hours.
Having said, that, the situation for altcoins is even worse. Some are already down more than 80% from their peak, showing just how brutal this crash has been. The CMC Altcoin Season Index has fallen to 38 out of 100, meaning Bitcoin is now dominating the market, while traders are avoiding riskier altcoins.
For now, the crypto market is in a state of shock. If Bitcoin can stay above $92,000, there is hope for a recovery. But if it falls below this level, a further drop to $83,000 is possible, which could cause even more liquidation and fear.
Crypto expert and investor, Crypto Michael expressed shock at the unprecedented altcoin crash, noting that many dropped 50% while Bitcoin remained relatively stable.
He compared the situation to the FTX crash, suggesting that something major may have happened behind the scenes. Despite the turmoil, he sees potential opportunities in the bloodbath and plans to look for profitable setups in the coming days.
The market meltdown follows President Donald Trump’s decision to impose new tariffs on Canada, Mexico, and China. The 25% tariff on Canadian and Mexican imports, along with a 10% tariff on Chinese goods and Canadian energy, has sparked global economic concerns.
Despite the short-term turmoil, some analysts believe this situation could actually benefit Bitcoin. Jeff Park from Bitwise Asset Management argues that these tariffs could push Bitcoin higher. He links it to the Triffin dilemma, where the U.S. dollar’s role as the world’s reserve currency creates trade imbalances.
With a weaker dollar and declining interest rates, Bitcoin could emerge as a safe-haven asset, attracting investors looking for stability in uncertain economic conditions. While the short-term outlook is tough, many believe this crash presents a long-term buying opportunity for Bitcoin investors.
It’s bulls vs bears. Only time will tell which side wins this round.
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