Why Is Crypto Market Going Down? Bitcoin, Ethereum Lead $840M Sell-Off

The cryptocurrency market has taken a major hit, dropping by 11.32% since April 5. Over the weekend alone, it fell by more than 7.16%, leaving traders stunned. In just the past 24 hours, almost all major cryptocurrencies have seen sharp declines—Bitcoin is down over 9.5%, Ethereum 17.3%, XRP 20.5%, BNB 9.9%, Solana 17.4%, TRON 5.7%, Dogecoin 19%, and Cardano 17.9%.

Many believe the sell-off is being driven by growing uncertainty in the markets, caused by the U.S. government’s aggressive trade tariff policies. Is this the start of something much bigger?

With global markets shaking and tensions rising, the answers might be more complicated than they seem. Let’s break it down.

Bitcoin and Ethereum Suffer Heavy Losses

On April 5, the total market cap of cryptocurrencies was around $2.65 trillion. By the end of April 6, it had fallen to about $2.46 trillion—marking a 7.16% drop over the weekend.

In the last 24 hours alone, the market has dropped by around 12.5%, affecting nearly every major coin.

Bitcoin and Ethereum have taken the biggest blows in this market crash. Bitcoin is now priced at $74,902.53—still about 45.52% below its all-time high.

In the last 24 hours, Bitcoin has declined by nearly 9.5% and Ethereum by over 17.3%.     

Altcoins Follow Suit: SOL, XRP, and Doge Dive

The altcoin market has also been hit hard. Since April 5, altcoins overall are down by at least 14.29%. If you exclude the top 10 coins, the drop is even worse—about 16.47%.

Here’s a look at how major altcoins have performed in the past 24 hours:

• Shiba Inu: -14.2%
• Ethereum: -17.3%
• XRP: -20.5%
• BNB: -9.9%
• Solana: -17.4%
• TRON: -5.7%
• Dogecoin: -19%
• Cardano: -17.9%
• Chainlink: -19.33%
• Avalanche: -14.1%
• Stellar: -19.3%

The $840M in Liquidations: An Overview

In the last 24 hours, more than $840 million in long positions have been liquidated. This happens when a trader’s leveraged position is forcefully closed by an exchange due to not meeting margin requirements.

What’s striking is that around 86% of futures bets were bullish, meaning most traders expected prices to go up.

Here’s how losses have stacked up:

• Bitcoin traders: $322 million lost
• Ethereum traders: $290 million lost
• XRP and SOL traders combined: Over $80 million lost

Tariff Shockwaves Hit Global Markets

This crypto crash is happening in the middle of growing global economic tension, largely due to U.S. President Donald Trump’s aggressive tariff strategy. His policy—referred to by some as an “economic nuclear war”—is also shaking up traditional financial markets.

In the past week, stock markets around the world have seen major drops:

• Australia: -6.86%
• U.S.: -7.84%
• Europe: -7.88%
• China: -7.10%
• Japan: -13.25%
• India: -6.67%
• South Africa: -8.70%

And in just the past 24 hours:

• Australia: -4.23%
• U.S.: -5.97%
• Europe: -4.60%
• China: -7.02%
• Japan: -7.83%
• India: -4.45%

Billionaire investor Bill Ackman has warned the U.S. government about the risks of escalating this economic conflict. He urged President Trump to hit pause and take a “time out” before the situation spirals further.