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- Nearly $870 million in crypto positions were liquidated as Bitcoin and Ethereum faced their biggest single-day drops of the year.
- Trump’s new tariffs on Canada, Mexico, and China added pressure to global markets, worsening the crypto sell-off.
- Bitcoin risks deeper losses if it fails to hold the $76K support, while Ethereum eyes a potential slide toward $1,990.
Nearly $870 million in crypto positions vanished in the past 24 hours as Bitcoin (BTC) and Ethereum (ETH) endured their steepest single-day drops of the year.
On Feb. 28, BTC plunged below $80,000, while ETH tumbled to a one-year low of $2,075, triggering a cascade of forced liquidations across the market.
Market Meltdown: Bitcoin and Ethereum Plunge, Liquidations Soar
Traders scrambling to unwind leveraged positions only worsened the bloodbath, amplifying sell-offs and intensifying losses. A staggering 216,516 traders faced liquidations, with the largest single order—a hefty $38 million—on HTX’s BTC-USDT pair. Long positions took the brunt, with $767.51 million wiped out, while short positions lost a more modest $103.19 million.
Bitcoin alone accounted for $414.80 million in liquidations, followed by Ethereum at $205.56 million. Among altcoins, Solana (SOL) suffered $35.82 million in losses, trailed by XRP ($22.32 million) and Dogecoin (DOGE) ($17.71 million).
Trump’s Tariff War Sends Shockwaves Through Crypto
The sell-off deepened as U.S. President Donald Trump announced fresh tariffs on Canada, Mexico, and China, rattling financial markets.
Set to take effect on March 4, the new tariffs include a 25% levy on Canadian and Mexican imports, along with a 10% increase on Chinese goods—stoking inflation fears and fueling concerns over potential economic slowdowns.
Stock Market Takes a Hit Alongside Crypto
Global markets felt the tremors, with the S&P 500 shedding 1.6%, erasing its year-to-date gains, while the Nasdaq 100 nosedived 2.8%, dragged down by an 8.5% drop in Nvidia (NVDA) shares.
Confidence in the post-election crypto rally appears to be waning, as leveraged traders betting on continued upside found themselves caught in a relentless downward spiral.
Bitcoin has now slid 27% from its all-time high of $109,350, while Ethereum has tumbled over 40% from its December peak.
Eyes on the Fed: Inflation Data Could Set the Tone
Investors now await the Federal Reserve’s core PCE inflation report, due later today, hoping for insights into potential monetary policy shifts in response to ongoing volatility.
If inflation remains stubbornly high, markets could brace for prolonged uncertainty, keeping crypto prices under sustained pressure.
Bitcoin’s Technical Setup: Rebound or Further Pain?
BTC’s correction has brought it to a crucial technical crossroads, with the 50-week exponential moving average (EMA) around $76,000 acting as a key support level.
Historically, BTC has used this EMA as a dynamic support floor during bull cycles, making its ability to hold above it a pivotal factor in sustaining the long-term uptrend.
On the weekly timeframe, the Relative Strength Index (RSI) has dipped to 44.05, a level that previously triggered strong rebounds in March 2020 and June 2021. If history repeats, this could mark a potential bounce zone.
However, a further RSI decline into oversold territory could push BTC toward the 0.786 Fibonacci retracement level at $57,691—a historically strong support area.
If the 50-week EMA fails, BTC could enter a deeper correction, with the 200-week EMA at $48,070 as the ultimate support zone.
For now, if BTC stabilizes in the $75K–$78K range, it may indicate a short-term bottom, possibly setting the stage for a recovery toward the $90K–$95K resistance zone.
Ethereum’s Downtrend: More Losses Ahead?
ETH’s breakdown signals trouble, with technical indicators hinting at a continued slide toward $1,990 in the short term.
The breach of a critical trendline—supporting ETH since mid-2022—suggests a structural market shift.
Compounding the bearish outlook, ETH has slipped below its 50-week EMA at $2,920, with the 200-week EMA at $2,290 briefly providing support. However, Ethereum’s inability to hold above these levels has heightened risks of further downside.
The RSI has dropped to 36.72, creeping toward oversold territory. Historically, dips below 40 have led to relief rallies, but muted buying pressure suggests bearish momentum may persist.
The next key support zone lies at the 0.236 Fibonacci retracement level at $1,993—a level of prior consolidation during the 2021–2022 market cycle.
If this fails, ETH could plunge toward $1,450, a level aligned with its 2022 bear market lows.
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