Geopolitical Shock Triggers Historic $10 Billion Crypto Liquidation Event

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The cryptocurrency market experienced a historic liquidation event, with nearly $10 billion in positions forcibly closed over a 24-hour period. This massive deleveraging was triggered by a sharp market downturn following the imposition of retaliatory tariffs on China by the Trump administration.

According to data from CoinGlass, over 1.5 million traders were liquidated, erasing $9.55 billion in open interest. The sell-off disproportionately impacted long positions, which accounted for $8 billion of the total, compared to $1.55 billion in short positions. Leading assets Bitcoin and Ethereum bore the brunt, with $1.37 billion and $1.26 billion liquidated, respectively.

The event represents one of the most significant single-day deleveraging episodes in cryptocurrency history. The broader market capitalization fell by over 9% to $3.8 trillion, with Bitcoin itself erasing all gains made since August after plunging from above $122,000 to a low beneath $102,000.