According to online liquidations tracker, Coinglass, the cryptocurrency market is bleeding as bullish leverage traders have lost over $1.3 billion within the past 24 hours. The massive downtrend started on Wednesday when bitcoin (BTC) plummeted below $85,000.
Fast forward to Sunday, when traders felt the market was gearing up for recovery, the market was flooded with long leverage positions. Sadly, the following 24 hours got worse as the world’s leading crypto plunged below the $75,000 mark.
Other high-cap cryptocurrencies like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also dropped by 6-12% within the last day. Consequently, the total crypto market capitalization plunged by over 8% to $2.4 trillion. The plummet has reduced investors’ confidence, as the market fear and greed index has drawn down to extreme greed.
Remarkably, the plummet affected big Asian markets like China, Taiwan, Japan, and Singapore as they had to stop trading early because their markets fell so much, some by as much as 10%.
Tariff War Trigger Major Crypto Market Liquidation
The growing tariff war started by U.S. President Donald Trump makes a recession more likely. This makes people wonder if Bitcoin can be a safe place to keep money like gold. Despite the ups and downs, Bitcoin’s long-term holders are still positive.
Hunter Horsley, CEO of Bitwise Investments, said that as countries trust each other less and companies have more trouble doing business worldwide, a digital place to store value that isn’t controlled by any one country becomes more important. He believes Bitcoin is more important than ever in the world’s economy.
At press time, BTC trades at a critical support level of $76,500. Its daily trading volume has surged by an astounding 220%, exceeding $44 billion and its 24-hour liquidations have spiked to $322 million.
Crypto Critics Voice Concerns
Following the cryptocurrency market crash, Peter Schiff seized the opportunity to reiterate his skepticism, highlighting the traditional safe-haven appeal of precious metals during economic uncertainty.
“After a delayed reaction on Friday, crypto is finally starting to crack. Ether has already fallen to its lowest level since Oct. 2023, down 65% from its peak, and Bitcoin just traded below 81K, taking out last week’s low. It could be a long day for those trapped in Bitcoin ETFs,” Peter Schiff states.
Conversely, precious metals have benefited from the market uncertainty, with gold prices rising by $80 earlier today and silver also exhibiting an upward trajectory.
