Cryptocurrency Market Hit by Massive Liquidations Amid Tariff Concerns

By: Eva Baxter

The cryptocurrency market faced significant turbulence as over $1 billion in liquidations were recorded within a 24-hour period. This upheaval, captured by recent data from CoinGlass, predominantly impacted altcoins such as SOL, XRP, and ADA, which collectively saw over $150 million in liquidations on March 4. The market disorder unfolded amidst escalating fears of a trade war after U.S. President Donald Trump announced a 25% tariff imposition on major trading partners Canada and Mexico.

During the upheaval, a substantial 87% of the liquidations stemmed from long positions, highlighting the volatility that marked the beginning of the month. The abrupt market shifts led to the erasure of substantial gains recorded days before March 4. Investors and analysts observed a downturn across both traditional and crypto markets, as the S&P 500 stock index also recorded a nearly 2% drop, responding to the daylighting of the new tariffs.

In Bitcoin's domain, the leading cryptocurrency saw its price tumbling below the $82,000 mark as the tariff measures took root, reversing gains that had been likened to a 'reserve' of stability for investors. This substantial depreciation in Bitcoin value emphasizes how prevailing economic policies and geopolitical decisions can exert considerable pressure on the volatile cryptocurrency markets. Market participants are now urging for cautious navigation through this unpredictability, emphasizing the need for agile trading strategies and the monitoring of global economic indicators. Those interested in tracking crypto trends can explore resources such as CoinGlass for real-time data and insights.