The cryptocurrency market faced a brutal sell-off, with Bitcoin (BTC) plunging by $10,000 in just 24 hours, triggering over $2.2 billion in liquidations. The sudden crash follows geopolitical uncertainty sparked by the latest U.S. trade policies, sending shockwaves across global markets.

Bitcoin Crashes Below $92K Amid Market Turmoil

Bitcoin’s price plummeted to an intraday low of $91,500 (on Bitstamp) during early Monday trading in Asia, marking its lowest point since January 13. This represents a $15,000 drop from its recent high of over $106,000 on Friday.

The sharp decline began over the weekend after President Donald Trump imposed tariffs on China, Canada, and Mexico, prompting retaliatory measures from these nations. The uncertainty surrounding the escalating trade tensions rattled financial markets, with crypto suffering one of the worst sell-offs of the year.

Altcoins Face Heavy Losses

While Bitcoin’s downturn was significant, altcoins suffered even more severe losses, with most experiencing double-digit price drops:

• Ethereum (ETH): -20%
• XRP: -23%
• Binance Coin (BNB): -15%
• Dogecoin (DOGE): -24%
• Cardano (ADA): -25%
• Chainlink (LINK): -21%
• Avalanche (AVAX): -24%
• Stellar (XLM): -20%
• Solana (SOL): -8% (one of the few holding better than others)

The overall crypto market capitalization lost more than $400 billion, reflecting the intensity of the market-wide correction.

Mass Liquidations Hit Crypto Traders

According to CoinGlass, the sell-off triggered an unprecedented $2.2 billion in liquidations across crypto exchanges in a single day. More than 700,000 traders were liquidated, with the largest position wipeout occurring on Binance, involving an ETH/BTC trade worth over $25 million.

The liquidation wave reflects the extreme volatility and leveraged trading that remains prevalent in the crypto market, as traders failed to anticipate the rapid price swings driven by macroeconomic factors.

What’s Next for Crypto?

The broader impact of U.S. trade policies on global markets will likely dictate Bitcoin’s next move. Investors are closely watching whether BTC can reclaim the psychological $100,000 level or if further downside awaits.

With geopolitical uncertainty escalating, crypto markets may continue experiencing turbulence in the short term. However, long-term sentiment remains tied to Bitcoin’s increasing institutional adoption and its resilience during market corrections.

Conclusion

Bitcoin’s dramatic decline and the subsequent market-wide collapse underscore the ongoing volatility in crypto markets. While liquidations have surged past $2.2 billion, the key question remains: Will BTC recover quickly, or is this the start of a deeper correction? Investors will be watching macroeconomic developments closely to gauge the next move.

Nothing has fundamentally changed about Bitcoin or about top projects in the crypto space. So then when their is capitualtion, feat in the market, etc, it’s time to double down on your convictions.