$16B Long Positions Obliterated in Crypto’s Largest-Ever Liquidation Wave

Trump’s Tariff Warning Sparks $16B Crypto Liquidation, USDe Briefly Dips Below $1

Crypto markets plunged Friday after former U.S. President Donald Trump threatened 100% tariffs on Chinese imports, igniting a global risk-off wave that wiped out more than $16 billion in leveraged long positions. The turmoil briefly pushed Ethena’s stablecoin USDe below its $1 peg.

The sell-off intensified during early Asia trading hours as investors reacted to renewed trade war concerns. Bitcoin fell below $110,000 before rebounding to $113,294, while Ether recovered to $3,844. The CoinDesk 20 Index dropped 12.1%, reflecting broad-based declines across major tokens.

Total crypto market capitalization fell to $3.87 trillion. Of the $19.1 billion in liquidations recorded by CoinGlass, approximately $16.7 billion came from long positions. USDe touched $0.9996 at one point, signaling temporary stress in derivatives markets, though Ethena Labs confirmed minting and redemptions continued normally and highlighted increased overcollateralization from short-side gains.

Friday’s liquidation dwarfed previous market crashes, exceeding the 2022 FTX collapse and the COVID-era sell-off by more than tenfold in nominal terms, though the percentage drop was smaller relative to the market’s current size.

CoinGlass noted that the actual liquidation total may be higher due to reporting delays from Binance, the world’s largest exchange. Market uncertainty is further compounded by the ongoing U.S. government shutdown, which has stalled key economic data releases amid renewed trade tensions.