Crypto Liquidations: $500M Wiped Out as Trump Tariffs Shake the Market

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In the past day, the cryptocurrency market experienced significant volatility, leading to widespread liquidations of both short and long positions. This turmoil was primarily triggered by President Donald Trump’s announcement of new tariffs, which injected uncertainty into global markets, including cryptocurrencies. Bitcoin’s price dropped from a high of approximately $88,500 to around $83,400 following the tariff news.

The market experienced significant liquidations totaling approximately $500 million, with $300 million occurring within the last four hours. Initially the short positions were hit, then long ones, almost equally. In just one hour, the market wiped out over $100 million in long positions.

$489M Wiped Out as 159K Traders Liquidated

In the past 24 hours, 159,333 traders were liquidated , the total liquidations comes in at $489.07 million. The biggest single liquidation order was $11.97 million in ETHUSDT on Binance. Of the total, $257 million came from long positions and $232.06 million from short positions.

These liquidations have impacted various cryptocurrencies, including Bitcoin, Ethereum, Solana, XRP, and Cardano. Consequently, the overall market capitalization has decreased by $200 billion since its peak during after-hours trading.​

The recent market fluctuations have been largely affected by macroeconomic factors particularly, the anticipation of Liberation day tariffs announced by Trump. These tariffs have led to a high degree of market uncertainty leading to price volatility across major cryptocurrencies. Bitcoin, for instance, has seen its price fluctuate between $73,000 and $88,000, and is currently trading around $83,500, down by 0.9%.

Liquidation Day or Liberation Day?

This has left X users wondering if it was really a ‘Liberation Day’ or just a ‘Liquidation Day,’ given the massive wave of liquidations that shook the market.

Bitcoin plunged to $82,000 on April 2, 2025, as global markets reacted to President Donald Trump’s bold tariff move. In his ‘Liberation Day’ speech, Trump announced aggressive reciprocal tariff rates on key trade partners, calling it a much-needed fix for America’s trade issues.

Despite these short-term challenges, analysts remain optimistic about Bitcoin’s long-term prospects. Forecasts suggest that Bitcoin could surpass $200,000 by the end of 2025, with some projections reaching as high as $500,000 if the U.S. establishes a strategic Bitcoin reserve. ​