The cryptocurrency market saw a dramatic downturn, shedding approximately $140 billion in market capitalization following new U.S. tariff announcements.
Bitcoin, which briefly soared past $88,500, plunged by over $6,000 in minutes, dragging the broader market into the red. Liquidations surged to $500 million as traders faced intensified volatility.
After a slow weekend, Bitcoin attempted to reclaim $84,000 but struggled to maintain momentum. Early Tuesday brought renewed volatility, with BTC fluctuating between $82,400 and $85,500 before a sudden drop to $81,200 on Bitstamp. However, bullish sentiment returned amid speculation about Trump distancing himself from Elon Musk, pushing Bitcoin to a weekly high of over $88,500.
That surge was short-lived. The latest round of tariffs imposed by the U.S. administration rattled the market, leading to a swift $6,000 drop in Bitcoin’s price to just over $82,000. A minor recovery has since stabilized BTC above $83,000, though its market capitalization has declined to $1.65 trillion. Its dominance over altcoins remains near 60%, according to CG data.
Major altcoins mirrored Bitcoin’s trajectory, experiencing sharp declines after initial gains. Leading the downturn were Toncoin, Avalanche, and Solana, each shedding up to 6% in daily losses and over 10% from their local peaks. Ethereum, XRP, Dogecoin, Cardano, Stellar, and Chainlink also posted losses, though less severe.
More pronounced declines came from HYPE (-10%), CRO (-11%), and PI (-7.5%). The overall market cap now stands at $2.765 trillion, down sharply from its previous highs.
As volatility gripped the market, overleveraged positions suffered heavy losses. Nearly $500 million in liquidations occurred, with long positions bearing the brunt at $260 million. CoinGlass data indicates that close to 160,000 traders faced liquidation within a single day, underscoring the precarious conditions of the crypto landscape amid macroeconomic uncertainty.