Sharp Swings in Major Cryptos Lead to $450 Million in Long and Short Liquidations

Tariff Turmoil Sparks $450M in Crypto Liquidations as Bitcoin Retreats

A surge in market volatility driven by fresh U.S. tariffs has rattled crypto markets, wiping out gains and triggering over $450 million in liquidations across leveraged positions.

Bitcoin (BTC), which briefly flirted with $87,000 midweek, has since dropped to around $83,500 as traders digested the fallout from U.S. President Donald Trump’s sweeping trade actions. The latest round includes a 25% tariff on auto imports and a blanket 10% levy on all exports to the U.S., with China, India, and the EU facing even steeper charges.

The sudden escalation in trade tensions sent shockwaves through global markets. Asian equities plunged Thursday morning, U.S. stock futures pointed sharply lower, and gold soared to yet another all-time high. Meanwhile, the crypto market couldn’t escape the turbulence.

Bitcoin, ether (ETH), and XRP all posted sharp reversals after a promising rally earlier in the week. Ether dropped back below $1,800 and XRP slid beneath $2.15 after briefly signaling bullish momentum.

The result? A near-even split in losses for both bulls and bears. More than $230 million was wiped from leveraged long positions, while short sellers lost a similar amount as prices whipped back and forth. BTC-tracked futures saw $172 million in liquidations, ETH futures lost $120 million, and altcoins accounted for the remainder.

Forced liquidations occur when traders using leverage fail to meet margin requirements, prompting exchanges to automatically close their positions. Such events often underscore elevated uncertainty or trend exhaustion.

Thursday’s dual-sided flush shows a market caught in a tug-of-war between macro fears and long-term optimism — and until there’s clarity on trade policy and economic fallout, crypto could remain on edge.