Significant crypto market liquidations have been triggered by the unexpected surge in the price of Bitcoin above $80K.
Bitcoin (BTC) is at the centre of a new round of liquidations sparked by the dramatic increase in cryptocurrency’s combined market capitalization. As the market moved against expectations, 156,601 traders experienced liquidations over the last day, adding another twist to the ongoing global trade war.
Actual liquidation proceeds during this time totalled $573.19 million. The most significant liquidation order, valued at $4.47 million in a BTC-USDT-Swap contract, occurred on the OKX exchange.
Bitcoin Leads Crypto Market Liquidations
The price of Bitcoin surged by more than 8% to reach a new high of $82K after plunging to a daily low of $74,500. According to Coinglass data, this sudden change caught short sellers off guard as they were the leading cause of the $225 million Bitcoin liquidation in a single day.
In particular, long traders made only $87.77 million, while short sellers made $137 million. Other risky assets were not spared, based on the correlation between Bitcoin, Ethereum, and the leading altcoins.
Ethereum made $161.71 million from a combined cryptocurrency liquidation, while XRP made $26.75 million. More short liquidations occurred for both top altcoins, with ETH seeing $99 million and XRP seeing $17.29 million.
As discussions about the relative status of XRP and Ethereum are again taking centre stage, this liquidation figure continues to be a defining factor.
What Caused the Price Rallies for Bitcoin and Other Altcoins?
The ongoing trade war between the United States and China caused the market to open bearishly. However, for 75 nations that have established a line of communication with the United States, US President Donald Trump announced a 90-day halt on the tariff.
Bitcoin has recovered due to this policy change, and analysts are now discussing sustainability.
Even though the most recent outlook for crypto liquidation indicates that the market will normalize, further escalation poses a challenge. President Trump’s most recent move isolated China and imposed a 125% tariff that went into effect right away.
Monetary policy uncertainty could offset current gains from risk assets if China announces additional tariffs on US goods.
