Crypto derivatives traders faced over $1 billion in liquidations within 24 hours as escalating trade tensions rattled markets, according to CoinGlass data.
A staggering 87% of liquidations came from long positions, as the volatility of early March erased double-digit gains from the previous days, the data revealed.
On March 4, US President Donald Trump announced 25% tariffs on Canada and Mexico—America’s largest trade partners—causing the S&P 500 to drop nearly 2% in morning trading.
Bitcoin (BTC) plunged to around $82,000 after briefly reaching $93,000 on March 3, per Google Finance data. Other major cryptocurrencies suffered even steeper declines, with Ether (ETH) and Solana (SOL) tumbling 12% and 20%, respectively.
This market downturn came as a shock to traders who had turned bullish following Trump’s March 2 proposal to establish a US crypto reserve, which would include BTC, ETH, XRP, and Cardano (ADA).
Bitcoin long positions took the hardest hit, with over $300 million liquidated in a single day, CoinGlass reported. SOL, XRP, and ADA traders collectively saw losses exceeding $150 million.
These three altcoins had recently surged after Trump signaled their inclusion in his proposed crypto reserve, but the tariff-related market chaos has now erased much of those gains.
The latest turmoil threatens to undo the so-called “Trump effect,” which had pushed Bitcoin from $69,374 on Election Day (Nov. 5) to a record high of $108,786 by Inauguration Day on Jan. 20.
Since then, BTC has been on a downward trajectory, slipping below $80,000 by Feb. 28—a 26% decline, according data.
This sell-off highlights that macroeconomic pressures, such as a potential trade war and a weakening global economy, may outweigh bullish developments in the crypto industry—including the US SEC’s recent dismissal of multiple lawsuits against crypto firms.
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