The crypto market shed $200 billion as prices plunged on Monday.
Leveraged traders lost $1.1 billion, with longs suffering the most.
Analysts remain bullish despite the crash.
The crypto market suffered a brutal crash on Monday, erasing more than $200 billion in market value and sending shockwaves across digital asset trading desks.
Bitcoin (BTC) tumbled from above $84,000 late Sunday to as low as $74,500, while Ethereum (ETH) and other major altcoins posted double-digit percentage losses.
The sell-off coincided with a broader global market rout that wiped trillions off equities across the U.S., Asia and Europe.
Major stock indexes plummeted as geopolitical tensions flared, and circuit breakers were triggered in key markets like Hong Kong and Taiwan, forcing temporary trading halts.
The rapid downturn triggered widespread liquidations across leveraged crypto positions, with more than $1.1 billion wiped out in 24 hours, according to Coinglass data.
Long traders bore the brunt, losing over $840 million, while short positions accounted for roughly $140 million in losses.
Bitcoin long traders lost $282 million in liquidations, while short BTC positions shed $62 million.
Crypto liquidation heatmap. Source: Coinglass
Ethereum positions fared even worse. Leveraged ETH traders lost a combined $297 million, with $252 million in long positions liquidated and $42.5 million in short positions taken out.
One Ethereum whale was hit particularly hard. The wallet was liquidated for over 67,570 ETH, valued at more than $106 million, as the price of ETH slipped below $1,650.
Tariff Escalation Sends Risk Markets Reeling
The downturn in digital assets came as markets reacted to escalating trade tensions between the United States and China.
While most U.S. allies reportedly reached out to de-escalate the situation, the White House signaled no plans to walk back the tariff regime.
The result was a synchronized sell-off in risk assets, exacerbating ongoing volatility in both equities and cryptocurrencies.
Analysts say the rising macroeconomic uncertainty—coupled with the Federal Reserve’s hesitation to cut interest rates—has left traders risk-averse.
Bulls Still Buy the Dip
Despite the carnage, prominent crypto figures remain optimistic.
Arthur Hayes, the former BitMEX CEO and vocal market commentator, reiterated his bullish stance.
In a post on X, Hayes claimed that BTC had bottomed at $77,500 and encouraged investors to “buy the dip,” adding that if Bitcoin fell below $76,500, his “credibility will be in tatters.”
Cardano founder Charles Hoskinson also weighed in, urging patience amid the chaos.
“I remain confident in $250,000 Bitcoin within a year alongside a rising tide for everyone else,” Hoskinson wrote. “It’s just going to be a bumpy ride.”
While bullish sentiment persists among crypto’s most vocal proponents, many retail and institutional traders were left nursing steep losses.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
