Over $925M in leveraged crypto positions were liquidated, with long traders and Ethereum holders hit hardest.
ETH led liquidations with $300M losses as its price dropped 4.4% to $3,686; BTC dipped below $114K amid market panic.
Trump's new global tariffs and weak U.S. jobs data led to sharp selloffs across crypto and traditional markets.
A wave of liquidations has struck the crypto markets, wiping out nearly $1 billion in leveraged positions. Bitcoin plunged below $114,000 following increased global trade tensions and disappointing U.S. job figures.
This escalated after the U.S. government imposed sweeping new tariffs, pushing both traditional and digital markets sharply lower. Data from Coinglass shows total crypto liquidations surged past $900 million in just 24 hours, an increase of more than 300% compared to the day before.
ETH Leads in Liquidations as Market Selloff Intensifies
According to Coinglass, long traders absorbed roughly $800 million in losses within the past day. Ethereum led with $300 million in liquidations. Bitcoin also had significant liquidations totaling $142.19 million in the same period.
These losses show traders' misplaced bets on upward price momentum amid growing market uncertainty. Ethereum’s price fell by 4.4%, now trading at $3,686. Bitcoin briefly dropped to $113,000 after failing to hold its position above $118,000.
XRP also faced turbulence, dipping to $2.93 before recovering slightly to $2.30. Notably, nearly all major altcoins recorded losses exceeding 4% over the same window.
Trump's Tariff Expansion Leads to Global Market Dips
The market volatility intensified after former President Donald Trump announced new tariff measures. On July 31, he imposed a blanket 10% tariff on goods from all countries, except those already facing higher rates.
Shortly after, the U.S. raised tariffs on Canadian goods to 35%, prompting investor panic. This coincided with a steep decline across U.S. stock indexes. The S&P 500 dropped by 1.5%, while the NASDAQ fell 2.16%.
The Dow Jones closed 330 points lower, reflecting the broader market anxiety. Asian markets opened down as well, with Taiwan’s TAIEX shedding 162 points and the Hang Seng dropping 45 points.
Leveraged Positions Wiped as Market Turns Risk-Off
Crypto’s recent downturn followed a brief recovery earlier in the week, when the Fed left interest rates unchanged. However, the market reversed quickly, with Bitcoin dropping over 2.5% on July 31 to $114,322.
From July 30 to August 1, long positions totaling $925.6 million were liquidated, compared to just $159.3 million in shorts. The wave of liquidation depicts the increasing risk exposure of the crypto market during times of macroeconomic distress.
Generally, the crypto market lost 6.9% of its value over 24 hours and fell to $3.84 trillion. The steep decline of digital assets, especially BTC and ETH, shows the susceptibility of risk-on assets during increasing economic pressure and trade tensions.
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