$16 Billion Liquidation Occurred in the Crypto Market

News from the US Shakes the Crypto Market

The US markets experienced a sharp decline following President Donald Trump’s threat of a 100% tariff on Chinese imports. This situation led to global financial turmoil, causing losses in the values of digital assets such as Bitcoin and Ethereum. The wave of selling that started on Friday continued into the Asian morning hours.

Market Uncertainty is Increasing

The US government shutdown has increased uncertainty in the markets by delaying economic data releases. This situation has driven investors into fear and concern. The price of Bitcoin fell back to 113,294 dollars, dipping as low as 110,000 during the day. Ethereum, on the other hand, rose to 3,844 dollars. However, the CoinDesk 20 Index lost 12.1% of its value.

Crypto Liquidation Rate Breaks Records

Today, the collapse in the markets witnessed the largest liquidation event in crypto history. Over 16 billion dollars worth of long positions were liquidated. According to CoinGlass data, more than 19.1 billion dollars in total was liquidated, but it is noted that the actual figure may be higher. The world’s largest crypto exchange, Binance, is reporting data more slowly than other platforms, causing this situation.

On Friday, the decline of cryptocurrencies caused significantly greater losses than those seen during the early periods of the COVID-19 pandemic and the collapse of the FTX exchange in 2022. When looking at the percentage-wise, considering the growth of the crypto market since 2022, this collapse is being regarded as much less significant.

Lastly, the Ethena team stated that the issuance and buybacks of USDe continued uninterrupted despite market volatility, and that the stablecoin is further collateralized. Additionally, another factor that increased investor concerns was the delay of significant economic data releases following the US government shutdown.