- Massive liquidations hit the crypto market with 280k traders affected and US$853 million wiped out in 24 hours, primarily from Bitcoin and Ethereum long positions.
- Fear and Greed Index has plummeted to “Extreme Fear” at 23, reaching levels not seen since early March as market sentiment deteriorates.
- Analysts warn that escalating tensions between the US and China over Trump’s tariff threats could trigger further market decline.
- Countries are responding differently to Trump’s tariff threats, with Vietnam, Israel and India dropping tariffs on US products while China, the EU and Canada contemplate countermeasures.
Overnight the price of Bitcoin broke through the US$80k (AU$133k) support barrier, dropping as much as 7% on the daily chart and trading for US$78,315 (AU$130,926) at the time of writing.
It’s a sea of red, and no crypto was able to go against the trend. Some, like Berachain and Bittensor, even saw double-digit losses close to 20% over the past day.
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Ethereum, Solana and Dogecoin (down 12%) and XRP (down 11%) are all in the red, as the below graph shows.
Liquidations Cause Mayhem on Crypto Markets
Meanwhile, the past 24 hours saw 280k traders liquidated, with a total of US$853 million (AU$1.4 billion) in liquidations. As expected, Bitcoin and Ethereum had the most long liquidations with US$246 million (AU$412 million) and US$216 million (AU$362 million) respectively, as data from Coinglass shows.
The Fear and Greed Index has meanwhile slipped back into Extreme Fear, hitting a low of 23, something not seen since early March.
Analysts at 10X Research believe that the Trump-induced tariff war could intensify as it looks like China is not yielding to US threats, which could mean more pain.
With Beijing refusing to back down to Trump’s demands, the situation could escalate further, potentially triggering a broader selloff in Bitcoin and the crypto market.
10X ResearchThey said that “Bitcoin’s trend model has been bearish since $96,000”, and from there it has now dropped a further US$18k (AU$30k).
Crucial How Countries Respond to Trump Tariff Threat
And while some countries, such as Vietnam, Israel and India have announced they would drop tariffs on US products, others like China, the EU and Canada seem to be counteracting Trump’s measures.
Others, like Japan, appear to be at least ready to negotiate:
When it comes to how the economy will continue to perform, 10X Research added that economic data suggests a slowdown and emerging labour market weaknesses, consistent with pre-tariff expectations.
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They added that despite the nonfarm payrolls providing justification for a cautious Federal Reserve stance, significant policy adjustments are unlikely “until the labor market shows more pronounced weakness—something that may require at least two more employment reports”.
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