Over $110B was wiped from the crypto market as Trump’s tariffs, ETF outflows, and a meme scandal triggered a sell-off. | Credit: Michael M. Santiago/Getty Images.
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Key Takeaways
The crypto market lost over $110 billion as Bitcoin and altcoins dropped to multi-week lows.
More than $880 million in leveraged positions were liquidated as traders were caught off guard.
Analysts suggest renewed Trump tariffs may have influenced the sell-off.
A sharp downturn rattled the crypto market on Monday, wiping out more than $110 billion in market capitalization as Bitcoin and altcoins tumbled to multi-week lows.
The sudden plunge, following weeks of sideways movement, was fueled by renewed macroeconomic pressure and a string of unsettling developments across the digital asset space.
Market analysts pointed to multiple catalysts behind the collapse, including President Donald Trump’s announcement to reinstate tariffs on Mexico and Canada, a wave of outflows from Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs), and lingering bearish sentiment following the Solana memecoin insider trading scandal.
The sell-off triggered one of the largest liquidation events in recent months, with $882 million in leveraged positions being wiped out across the market.
More than 284,000 traders were forced out of positions as prices plunged, with long traders bearing the brunt of the losses.
Total crypto liquidations. Source: Coinglass
Bitcoin tumbled from $96,954 to a monthly low of $90,924, leading to $256 million in long liquidations before briefly rebounding.
Ethereum saw an even steeper decline, dropping over 10% to $2,461, liquidating $176 million in long positions.
Solana suffered the worst decline, plummeting 13% to a multi-month low of $136. The collapse wiped out $83 million in long positions and $8 million in short liquidations.
Cardano founder Charles Hoskinson expressed frustration over the market’s reaction, suggesting that investors had lost sight of long-term fundamentals.
“The industry has set a new record for paperhands. It’s almost like the five-year-old throwing a temper tantrum on the supermarket floor,” Hoskinson wrote.
Trump Tariffs, ETF Outflows, and Market Fear Fuel the Collapse
Earlier in the month, a temporary pause in the tariffs had helped boost market sentiment, but the renewed trade barriers reignited concerns over macroeconomic uncertainty.
Adding to the uncertainty, the Solana memecoin scandal has cast a shadow over investor confidence.
The controversy, which revealed insider trading on major memecoins allegedly endorsed by political figures, triggered an exodus of funds from Solana and spread broader uncertainty across the market.
Meanwhile, Bitcoin and Ethereum ETFs saw significant outflows, further weighing on prices.
According to SoSoValue, Bitcoin ETFs recorded $1.14 billion in outflows over the past two weeks, the largest since their launch, while Ethereum ETFs lost $85.3 million during the same period.
The market is also struggling with the aftermath of Bybit’s $1.5 billion hack, which fueled additional selling pressure as traders rushed to move assets.
With fear gripping the market, the crypto fear and greed index has dropped to 27—firmly in the “fear” zone.
Just last month, the index was at 61, reflecting strong bullish sentiment. A score above 41 typically indicates neutral or bullish sentiment, while anything below suggests fear is dominating the market.
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.
