Crypto assets—particularly altcoins—could face prolonged pressure, with liquidity drying up and risk appetite diminishing. |
Credit: Kent Nishimura / Los Angeles Times via Getty Image.
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Key Takeaways
The crypto market erased its $350 billion gain from Sunday following new U.S. tariff announcements.
Leverage traders lost over $1 billion, with long positions suffering the most.
Global trade tensions are now seen as a greater bearish threat than China’s AI war.
The administration officially reinstated tariffs on imports from Mexico and Canada while introducing new agricultural duties.
The move rattled financial markets, sending stocks and crypto assets tumbling despite the previous day’s bullish momentum.
Sunday’s crypto rally, fueled by Trump’s announcement of a U.S. strategic crypto reserve, briefly pushed the total market cap from $2.7 trillion to over $3.1 trillion.
Just a day later, the market plunged below $2.6 trillion, erasing most of its recent gains.
A Bank of America survey underscored the growing market fear over trade policies, with 42% of respondents citing a global trade war as the biggest risk for 2025—up from 30% in January.
Crypto Market Sees Another Billion-Dollar Liquidation
The volatility wiped out over $1 billion in leveraged positions, as traders betting on a post-announcement rally were caught off guard.
According to Coinglass, 315,008 traders were liquidated in the past 24 hours, with total losses amounting to $1.09 billion. The largest single liquidation order, worth $13.4 million, occurred on Bitfinex.
Crypto liquidation reaches over $1 billion. Source: Coinglass.
Long positions bore the brunt of the liquidation wave, with $935 million in longs wiped out.
The sell-off mirrored a broader risk-off shift in global markets, as trade tensions and economic policy uncertainty weighed on risk assets.
Even the tech sector took a hit—Nvidia (NVDA) fell below its post-DeepSeek low from Feb. 3, while Tesla (TSLA) continued its downward spiral, erasing billions in market value.
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.
