April 2025 Crypto Market Sees Massive Liquidations Amid Economic Turmoil

April 2025 witnessed significant turbulence in the cryptocurrency market, with over $1.4 billion liquidated within a 24-hour period.

This sharp downturn was primarily driven by escalating global trade tensions, notably the introduction of new U.S. tariffs and subsequent retaliatory measures by China.

Bitcoin's price plummeted to approximately $78,000, marking its lowest point in 2025. This decline triggered widespread margin calls and forced liquidations, particularly impacting institutional investors.

Altcoins were not spared; Ethereum fell to around $2,100, while Solana and XRP experienced declines of 20% and 18%, respectively.

The market's volatility was further exacerbated by high-leverage trading practices, where traders amplify potential gains—and losses—through borrowed funds.

This environment led to a cascade of liquidations, intensifying the market's downward spiral.

Despite the downturn, some crypto hedge funds managed to navigate the chaos successfully. For instance, Eltican Asset Management and Fasanara Digital reported gains of nearly 1% and 0.5%, respectively, showcasing resilience amid market instability.

As the crypto market grapples with these challenges, investors are advised to exercise caution and closely monitor macroeconomic indicators that could influence future market movements.