The cryptocurrency market has suffered its most severe single-day collapse to date, with over $670 billion in value erased. This dramatic downturn followed the announcement by US President Donald Trump of a 100 percent tariff on Chinese imports, which intensified global trade tensions and triggered a wave of panic selling across financial markets.
Over 1.6 Million Traders Liquidated
According to Coinglass, more than 1.6 million traders were liquidated in the past 24 hours, with total liquidations surpassing $19 billion. This surpasses the previous record set in May 2021, when Bitcoin’s sharp drop from $43,000 to $30,000 led to $8.6 billion in liquidations. Bitcoin itself plunged to $105,000 before rebounding slightly to $112,000.
The liquidation figures may be even higher than reported, as Binance only logs one liquidation order per second. The scale of the sell-off has made this one of the most volatile days in crypto history.
Altcoins Plunge as CEX Liquidations Accelerate
Arthur Hayes, co-founder of BitMEX, attributed the sharp decline in altcoins to automatic liquidations on centralized exchanges. He explained that cross-margined positions were forcibly closed, creating a cascade of sell orders that drove prices down. Some altcoins on Binance reportedly lost up to 90 percent of their value.
Hayes noted that traders with low-limit buy orders, often called stink bids, were able to scoop up assets at deep discounts. He also expressed optimism for a Bitcoin bull run in 2026, citing expectations of looser monetary policy from the Federal Reserve.
Exchange Outages Add to Market Chaos
As the market tumbled, several major exchanges experienced technical difficulties. Binance users reported delays and disruptions due to high traffic, though the platform resumed normal operations within hours. Other platforms including Coinbase, Robinhood, and Kraken also faced outages, with users encountering frozen order books and lagging interfaces.
Frequently Asked Questions (FAQs)
- What caused the crypto market crash?
The crash was triggered by a 100 percent US tariff on Chinese goods, sparking global risk aversion.
- How many traders were affected?
Over 1.6 million traders were liquidated in a single day.
- Which exchanges experienced issues?
Binance, Coinbase, Robinhood, and Kraken all reported outages during the crash.
