What Is Causing the Crypto Sell-Off Today? Liquidations Hit $1B Amid Market Chaos

The crypto market is taking a hit as multiple factors collide: Trump’s tariffs on Mexico, China, and Canada, a surge in hacking incidents, and massive liquidations on major exchanges like Bybit. Billions are being wiped out in hours, and panic is spreading fast. Meanwhile, an influx of new tokens and inflation pressures are only making things worse.

The market initially surged after Trump’s announcement about U.S. crypto reserves, but those gains quickly disappeared. Doubts over how the plan would be executed and whether it would receive regulatory approval caused optimism to fade. On top of that, the tariff news added another layer of uncertainty.

With Bitcoin erasing its weekend gains and Ethereum facing one of its worst quarterly performances ever, investors are bracing for what comes next.

Let’s break down what’s really happening.

Crypto Liquidations Cross $1 Billion

Crypto liquidations have soared past $1.09 billion in just 24 hours, with Bitcoin alone accounting for over $400 million. The market crash has wiped out $460 billion in total value, an average loss of $19.1 billion per hour, according to The Kobeissi Letter. This marks the most significant sell-off of 2025 so far.

Bitcoin Dips as Market Volatility Grows

Bitcoin has lost its weekend gains and is now fluctuating between $82,000 and $85,000 as investors react to the upcoming tariffs. The leading cryptocurrency dropped 9.8% to $83,725, and with tariffs kicking in today, more price swings are expected.

Alankar Saxena, CTO and co-founder of Mudrex, warned that if Bitcoin falls below the $81,000 support level, further declines could follow. However, he also pointed out that if sentiment improves, Bitcoin has a chance to recover, with resistance at $92,000.

Former BitMEX CEO Arthur Hayes remains bullish on Bitcoin’s long-term growth but cautioned that, in a worst-case scenario, the price could dip to $70,000, aligning with the last cycle’s all-time high.

Altcoins Hit Harder

Altcoins have suffered even steeper losses in the last 24 hours. Ethereum fell 15% to $2,083, making it one of its worst Q1 performances ever. After briefly spiking above $2,500 following Trump’s crypto reserve announcement, Ethereum tumbled back to $2,050, erasing all its recent gains.

The overall crypto market cap has dropped 10.5% to $2.76 trillion, with leading altcoins seeing sharp declines. Cardano is down 25%, Solana 19%, Dogecoin 16%, and XRP 18%.

Despite the downturn, analysts advise investors to stay calm and avoid panic selling, as the market often rebounds after major volatility.

Volatility is nothing new in crypto, but this time, the stakes feel higher as global economic pressures add fuel to the fire.