02.08.2025 16:45

A significant cryptocurrency market downturn resulted in over $600 million in liquidations within a 24-hour period, according to data from internet sources. This dramatic price crash primarily impacted long positions, indicating a significant wipeout of bullish traders betting on rising prices. The swift and substantial market shift underscores the volatility inherent in the cryptocurrency market.

Ethereum experienced the most substantial losses, with liquidations totaling $228.09 million. Bitcoin followed closely behind, registering $131.37 million in liquidations. This downturn affected a broad range of cryptocurrencies, including Solana (SOL), Dogecoin (DOGE), and XRP, impacting a total of 145,700 traders. The sheer scale of these liquidations highlights the considerable financial risk involved in cryptocurrency trading.

The largest single liquidation event, amounting to $4.45 million, occurred on the Binance exchange for the ETH/USDC trading pair. Contributing factors to this sharp correction include a confluence of macroeconomic and regulatory uncertainties. These factors range from new tariff impositions, as exemplified by the 25% tariff on India announced by former President Trump, to adjustments in data tariffs impacting over 70 countries.

Further compounding the market instability, the Federal Reserve's hawkish stance and maintained interest rates introduced additional volatility. Even positive news failed to alleviate investor concerns, illustrating the prevailing negative sentiment that precipitated the substantial price drops. Bitcoin's price currently stands at $113,700, reflecting a 1.5% decline for the day and a more substantial 4% drop over the past week. Ethereum, meanwhile, is trading at approximately $3,500, representing a 3.2% decrease.