The crypto market suffered liquidations of $300 million in just a few hours following new tariff threats from Donald Trump, particularly affecting traders in longs.
📢 What happened:
- Mass liquidations: Over $300 million in leveraged positions were closed on centralized exchanges, according to CoinGlass. 90% corresponded to longs, with BTC ($107M) and ETH ($87M) being the most affected.
- Catalyst: Trump proposed a 50% tariff on EU imports and a 25% tariff on iPhones made outside the U.S., generating fears of a trade war and a wave of selling.
- Widespread declines: BTC and altcoins like ETH and XRP fell 3%-4%, while tokens like UNI and SUI lost up to 7%.
Highlighted cases:
- A trader with a long position of $1.1 billion in BTC (40x leverage) faces $7.5 million in unrealized losses. Their liquidation could be triggered if BTC falls to $102,000.
- Interestingly, before the event, BTC derivatives showed an unusual bias towards shorts, despite record prices.
Context:
Analysts like Skew attribute the volatility to 'headlines driving deleveraging.' The market remains sensitive to macroeconomic news, even during a rally.
- Be careful with leverage -
