The cryptocurrency market experienced a record-breaking liquidation event, with more than $19 billion in leveraged positions liquidated across major digital assets. This surge in liquidations affected over 1.6 million traders, marking what data tracker Coinglass described as the largest liquidation event in crypto history.
Bitcoin and Ethereum bore the brunt of the downside: of the total liquidated amount, around $17 billion came from long positions, while short positions accounted for $2.5 billion. The event triggered cascading forced closes in crypto derivative markets, amplifying the market’s downward spiral.
This calamity coincided with President Donald Trump’s announcement of a proposed 100% tariff on Chinese imports and new export controls on software, which rattled markets and sparked widespread risk-off sentiment in the crypto sector. The tariff shock is being widely viewed as a catalyst that accelerated the sell-off and triggered mass liquidations.
Amid the volatility, analysts are watching for signs of contagion, especially in centralized exchanges and DeFi platforms with high leverage exposure. While the dust settles, investors are revisiting risk management strategies and demanding transparency in leverage and collateral systems across exchanges.
This event underscores how sensitive the crypto markets are to macroeconomic and geopolitical catalysts, and how overleveraged positions can amplify market stress beyond fundamentals.
