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This aggressive move by the U.S. administration sent shockwaves through global markets, including equities and commodities, but its ripple effect was most profound in the crypto sphere. Investors quickly reassessed risk, and fears of escalating trade tensions led to widespread panic selling across cryptocurrencies.
Unprecedented Liquidation Volumes
The aftermath of this geopolitical shock was a liquidation event of historic proportions. To put it into perspective:
COVID-19 market crash: Approximately $1.2 billion liquidated
FTX collapse: Around $1.6 billion in liquidations
Last night’s event: Nearly $20 billion liquidated in a single night