Coinspeaker
Tariff Announcement Sparks $2.23B Crypto Liquidations as Market Dips
The crypto market experienced a bloodbath in the past 24 hours, with liquidations surpassing $2.23 billion across long and short positions. This market turbulence followed an announcement by US President Donald Trump regarding new tariffs on imported goods, which triggered a broad sell-off in risk assets.
Data from CoinGlass revealed that 730,836 traders were liquidated, with long positions bearing the brunt, accounting for approximately $1.88 billion of the total liquidations. Short liquidations stood at $358 million. The largest single liquidation order was on Binance, where an ETH/BTC trade worth $25.64 million was forcibly closed.
Liquidations occur when traders’ positions are closed by exchanges due to major losses or insufficient collateral. This wave of forced closures underscores heightened market volatility amid geopolitical concerns.
Bitcoin Faces Bearish Indicators
Bitcoin
BTC
$95 739
24h volatility:
3.9%
Market cap:
$1.90 T
Vol. 24h:
$104.37 B
plummeted by 6.5% over the last day, hitting a low of $92,500 before slightly recovering to trade at $94,120. The largest cryptocurrency’s market capitalization now stands at $1.86 trillion, reflecting a 6% decline.
The Relative Strength Index (RSI) on the 4-hour BTC chart stands near 21.21, which places it deep into the oversold territory (below 30). This suggests that selling pressure is extreme and could lead to a potential short-term recovery if buying interest resurfaces.
Source: TradingView
The Moving Average Convergence Divergence (MACD) indicator further reinforces the bearish trend. The MACD line remains significantly below the signal line, along with the widening negative histogram bars, signaling a strong downside momentum. This bearish crossover reflects weakening market sentiment.
Immediate support lies at $92,500, which marked the recent local low. A failure to hold this level may see Bitcoin testing $90,000 as the next major support. Moreover, the on-chain options market on Derive.xyz suggests that there is a 22% probability of BTC prices falling to $75,000 by the end of March.
On the other hand, resistance is visible at $96,000, with a critical level near $98,500 that must be cleared for any meaningful recovery.
The Broader Crypto Market Panic
Ether
ETH
$2 597
24h volatility:
16.3%
Market cap:
$311.55 B
Vol. 24h:
$89.46 B
, the second-largest cryptocurrency by market cap, took a worse hit than Bitcoin. ETH nosedived 20% to $2,520 at the time of writing, losing its critical $2,750 support. Meanwhile, the broader cryptocurrency market saw its global capitalization shrink by 10% to $3.07 trillion.
The Crypto Fear and Greed Index flipped to 44, indicating fear, a stark reversal from the weekend’s greed levels. Despite the ongoing chaos, some analysts on X have urged investors to remain calm and consider the downturn as an opportunity to “buy the dip”.
Tariff Announcement Sparks $2.23B Crypto Liquidations as Market Dips
