Crypto Market in Chaos! $1.09 Billion Liquidated After Trump Tariff Shock

Crypto traders face challenges as market volatility and economic policies like Trump trade tariffs send the market into a downtrend. Investor confidence has dropped, increasing selling pressure and causing a crypto liquidation surge. Bitcoin and major altcoins have also lost substantial value, erasing recent gains and heightening investor fears. The market’s instability forces traders to adjust strategies quickly. Despite the uncertainty, opportunities remain for those who analyze trends effectively. 

Panic Selling Hits Crypto: $460 Billion Wiped Out in 24 Hours

The crypto traders are panicking as the market records $1.09 billion of liquidation in 24 hours. This market chaos has been caused by a variety of reasons, but Trump trade tariffs are creating the biggest turmoil. The tariffs on Canada and Mexico are going into effect today, and risk assets are losing investors once again. Today’s wave of liquidation was accompanied by massive drops in cryptocurrencies’ value. Bitcoin lost 10% of its value, while big altcoins, including ETH, XRP, SOL, and ADA, lost between 15% to 25%

Provided by Kobeissi Letter, Published on CoinGape, March 4, 2025.

Today, Bitcoin has had the biggest liquidation among cryptocurrencies, suffering more than $400 million of the $1.09 crypto liquidation surge. Additionally, as Graph 1 highlights, In the last 24 hours, the crypto market has also lost $460 billion in market cap. Moreover, according to The Kobeissi Letter, this caused a $19.1 billion loss in market cap per hour in the past day.

BTC Hits $94K, Then Crashes – Will $70K Be the Bottom?

Before today’s explosive downturn, the markets were experiencing a hopeful surge following the announcement of a crypto reserve on Sunday. Although President Donald Trump’s announcement energized the market over the weekend, all the gains were wiped out after today’s crash. On the weekend, BTC even reached $94,000, but today, it is trading at nearly $84,000. BTC’s trading volume saw a 15% increase today, reaching $77 billion and increased selling pressure. If this trend continues, Bitcoin can fall into the $75,000 range before starting a recovery.

Arthur Hayes, the former BitMEX CEO, reaffirms this view while remaining positive about BTC’s performance. While suggesting that Bitcoin’s bull cycle can continue, he mentioned in the worst-case scenario, BTC could bottom at $70000. KALEO, a crypto commentator, also suggested that after such a chaotic week for crypto, BTC’s fall to $70000 is not improbable. 

Altcoin Market Takes a Hit: Will Patience Be Rewarded?

Unsurprisingly, altcoins were not safe from this crisis, with the biggest altcoin, Ethereum, reaching as low as $2,030. Altcoins were also underwhelming throughout February, with Ethereum, Cardano, Solana, and XRP seeing 25% corrections in the last month. As such, although the year started with investors expecting an altcoin season, the market sentiment now shows no such expectation. 

Despite this disappointing performance, some analysts ask investors to refrain from panic selling. For instance, Michael van de Poppe, a known crypto analyst, is one of the commentators who urged the community to be patient. “Most of the altcoins are giving back their gains against Bitcoin today. Why? People want to get out; that’s why they sell on every bump upwards, and that’s why things will take time.”.

From Correction to Comeback: Is Crypto Rebound Coming?

If selling pressure persists, BTC could test lower support levels, possibly near $70K, while altcoins may decline further. However, renewed stability might restore confidence, sparking a market rebound as crypto continues to evolve. Long-term adoption remains a significant factor in sustaining growth. Although the current market condition is disappointing, experienced traders know historically, after every correction, a recovery can be coming. So, despite how market sentiment hinges on emotional decisions and celebrity endorsements, smart investors can analyze the market logically.