According to data from the on-chain liquidations tracker, Coinglass, the crypto market has been hit with a massive price plummet on Friday, after hitting its new all-time high of around $111,880 the day before. This resulted in huge losses for bullish leverage traders who placed long bets.
A few factors, including a tariff announcement from U.S. President Donald Trump, contributed to the plunge as it sent investors packing due to uncertainty of market expectations.
Trump’s Tariff Announcement Shakes the Market
President Trump announced on Friday that starting June 1, 2025, the United States would impose a 50% tariff on products from the European Union.
A tariff is like a tax on imported goods, and this news worried traders because it could lead to trade problems between big economies. The fear of rising trade tensions made many investors nervous, causing them to sell their crypto holdings. This sudden sell-off led to a quick drop in bitcoin’s price.
Hence, while many analysts predicted an upward trajectory, the announcement sent the market in the opposite direction, displaying the impact of big news on the U.S. financial market.
After this announcement, Bitcoin’s price fell below $107,300. This sudden drop forced many traders who had opened long leverage positions on BTC and other cryptocurrencies out of the market as their positions were liquidated. About 90,000 lost over $500 million within a few hours after Trump’s tariff announcement.
The highest single liquidation was on a BTCUSDT pair on the OKX crypto exchange, resulting in a $9.53 million loss.
What’s Next?
Even with the recent drop, many still believe in Bitcoin’s long-term potential. Price ups and downs are typical in crypto, but strong support from investors and growing interest in digital money keep hope alive. For now, analysis shows that a price correction may be on the way as the leading crypto, BTC, has been overbought. However, a further uptrend to $115,000 is expected before the price turns.
Moreover, the uptrend has paved way for many pro-crypto firms to display unwavering confidence in BTC. American firm, Strategy revealed plans to raise $2.1 billion for future BTC purchase while Semler Scientific has announced a $500 million splash into the market to scoop 455 BTC on Friday.
Meanwhile, as of this writing, Bitcoin is trading at $109,600, representing a 0.14% increase over the past hour.
