Crypto Market Faces $2.21 Billion Liquidation Amid Major Sell-Off

The cryptocurrency market has witnessed a significant downturn, with more than $2.21 billion in liquidations over the past 24 hours, according to data from CoinGlass. The majority of these liquidations—approximately $1.87 billion—were from long positions, as traders betting on price increases were caught off guard by the sudden market collapse.

Binance Leads in Liquidations

Among global trading platforms, Binance saw the highest number of liquidations, reflecting its dominance in the crypto space. As one of the largest exchanges by trading volume, Binance’s position at the top of liquidation rankings underscores the widespread impact of the recent price downturn.

Market Turmoil and Contributing Factors

The steep decline in crypto prices has been attributed to broader macroeconomic concerns, with geopolitical developments playing a crucial role. Notably, new tariffs imposed by former U.S. President Donald Trump have intensified fears of a global trade war, leading to heightened market volatility. Investors have reacted with caution, prompting a sharp sell-off across various digital assets.

Major Cryptocurrencies Hit Hard

The downturn has affected some of the largest cryptocurrencies, including:

• Bitcoin (BTC): Fell sharply, testing critical support levels near $93,878.
• Ethereum (ETH): Dropped significantly, nearing support at $2,150.
• XRP: Also suffered a steep decline, contributing to the broader altcoin collapse.

The crypto market’s sharp reaction to economic uncertainty highlights its vulnerability to external factors, including political and regulatory shifts.

What’s Next for Crypto Investors?

This event serves as a reminder of the high volatility of cryptocurrencies. While some investors see these price drops as a buying opportunity, others remain wary of further declines. As global economic policies continue to shift, traders and investors should stay informed and exercise caution in managing their portfolios.

With market sentiment fluctuating rapidly, it remains to be seen whether this sell-off marks the start of a prolonged downtrend or if the market can recover in the coming days.