- Over $900M in crypto was liquidated in 24 hours.
- Trump’s tariff threats spark global market fears.
- Weak U.S. job data adds to economic uncertainty.
In the last 24 hours, crypto markets have taken a sharp hit, with nearly $1 billion in crypto liquidations across major exchanges. The catalyst? A combination of political uncertainty and weak economic indicators.
Former President Donald Trump made headlines by promising aggressive tariffs on Chinese imports if re-elected. Investors across global markets, including crypto, responded with caution — leading to a sell-off of risk assets. Tariffs often signal economic slowdowns and inflationary pressure, which can spook speculative markets like crypto.
But that wasn’t the only factor. The latest U.S. job report revealed disappointing employment numbers, suggesting a potential cooling of the labor market. Weak job data generally signals reduced consumer spending and broader economic fragility, which further dampened investor sentiment.
Nearly $1B in Crypto Liquidations
The crypto markets reacted swiftly. In just one day, over $900 million in liquidations occurred, wiping out long positions across Bitcoin, Ethereum, and altcoins like Solana and XRP. Bitcoin briefly dipped below key support levels, while Ethereum also saw steep declines.
Major leverage traders were hit hardest as exchanges auto-sold collateralized positions to cover losses. Binance, OKX, and Bybit reported the largest volumes of liquidations, with Bitcoin alone accounting for nearly half the total.
Such sudden liquidations reflect the volatility inherent in crypto trading — and how external macro events can cause massive chain reactions in digital asset prices.
What’s Next for Investors?
With the U.S. economy sending mixed signals and political tensions rising, traders are likely to stay cautious. Analysts suggest a period of consolidation could follow, but if more negative macro data emerges, further downturns are possible.
For now, crypto investors are being urged to manage leverage carefully and watch global economic indicators closely.
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