Since the start of April 5, the cryptocurrency market has dropped by approximately 11.32%. During the weekend alone, the market slipped by over 7.16%. In the last 24 hours, almost all the top cryptos have seen serious declines. Bitcoin has plummeted by over 9.5%, Ethereum by 17.3%, XRP by 20.5%, BNB by 9.9%, Solana by 17.4%, TRON by 5.7%, Dogecoin by 19%, and Cadano by 17.9%.
It appears that market uncertainty created by the aggressive US trade tariff policy has caused a serious negative impact on the cryptocurrency market. The big question is: Is this just panic selling or the beginning of a deeper correction?
Bitcoin and Ethereum Suffer Heavy Losses
At the beginning of April 5, the cryptocurrency market cap was around $2.65 Trillion. By the closing of April 6, it reached as low as 2.46%, marking a 7.16% drop during the weekend alone.
In the last 24 hours, the cryptocurrency market has declined by no fewer than 12.5%. Almost all the major cryptos have suffered the impact of the sharp decline in the market.
Bitcoin and Ethereum are among the ones, which have suffered the most. As of now, the price of Bitcoin stands at $74,902.53, at least 45.52% below its all-time high.
In the last 24 hours, Bitcoin has declined by nearly 9.5% and Ethereum by over 17.3%.
Altcoins Follow Suit: SOL, XRP, and Doge Dive
Importantly, since the start of April 5, the altcoin market has slipped at least 14.29%, and the market cap of cryptos, excluding the top ten, has plummeted almost 16.47%.
Almost all the prominent altcoins have suffered the impact of the crypto market decline. In the last 24 hours, Ethereum has declined by 17.3%, XRP by 20.5%, BNB by 9.9%, Solana by 17.4%, TRON by 5.7%, Dogecoin by 19%, Cadano by 17.9%, Chainlink by 19.33%, Avalanche by 14.1%, Steller by 19.3%, and Shiba Inu by 14.2%.
The $840M in Liquidations: An Overview
Reports reveal that in the last 24 hours alone, over $840 million worth of long positions have been liquidated. A liquidation process happens when an exchange forcefully closes a trader’s leveraged position due to the trader’s incapability to meet the margin requirements.
According to reports, no fewer than 86% of futures bets were bullish. This implies that traders were expecting prices to rise.
Data shows that Bitcoin traders and Ethereum traders have lost $322 million and $290 million, respectively, as part of the latest liquidation development. Other major altcoin traders, including XRP traders and SOL traders, have faced a combined loss of over $80 million.
The Trump Tariff Factor: Global Market Panic
The bloodbath in the crypto market has been caused by global economic instability created by the Trump administration’s aggressive tariff policy.
Almost all the major markets, including the US and Europe, have felt the negative consequences of the so-called “economic nuclear war”, launched by US President Donald Trump.
In the last seven days, the US market has plummeted by over 7.84%, Europe by 7.88%, China by 7.10%, Japan by 13.25%, India by 6.67%, South Africa by 8.70%, and Australia by 6.86%.
In the last 24 hours alone, the US market has dropped by at least 5.97%, Europe by 4.60%, China by 7.02%, Japan by 7.83%, India by 4.45%, and Australia by 4.23%.
Investment leaders like Bill Ackman warned the US government against triggering an “economic nuclear war”, and advised the US President to take a “time out.”
