Over the past day, the volume of liquidations for cryptocurrency futures contracts reached $871 million. The majority of the losses were attributed to long positions, indicating a sharp decline in the prices of leading assets such as Bitcoin and Ethereum.
This is reported by Finway
Causes of the Liquidation Wave and Market Dynamics
According to analysts, this massive sell-off was triggered by an increase in volatility, which experts believe was caused by U.S. President Donald Trump’s statement regarding the potential imposition of new tariffs on goods from European Union countries. The sharp reaction from traders led to a mass closure of positions, affecting nearly 249,000 market participants.
“Experts believe that the sell-off was driven by concerns over the U.S. imposing tariffs on imported products from several EU countries. Recall that Trump threatened to impose tariffs while demanding that America be given the island of Greenland.”
The largest volume of liquidation was recorded on the Hyperliquid exchange in the BTC/USDT trading pair — $25.8 million. This platform ranked first in terms of liquidation scale, while Bybit took the second position.
Price Declines and Investor Sentiment
The majority of digital assets showed declines on daily charts. Bitcoin quotes dropped below $93,000, while Ethereum fell below $3,200, according to CryptoRank data. The Fear and Greed Index, which had recently reached local highs since early October 2025, decreased by 11 points over the past week and by another 5 points in the last 24 hours.
According to Min Chong, a researcher at Presto Research, the cryptocurrency market has proven to be more vulnerable to these events than other high-risk assets that have maintained relative stability under similar conditions.
