Brief
- Bitcoin fell from $121,000 to $109,000 in about seven hours on Friday. Ethereum hit $3,686 and Solana topped $173, per CoinGecko.
- Liquidations approached $20 billion for the day, including about $16.7 billion in long positions, after an hour that wiped out nearly $7 billion.
- Stocks fell alongside crypto, with the Nasdaq falling 3.6%, the S&P 500 falling 2.7%, and the Dow Jones falling 1.9%.
The crypto market has started to recoup its losses following a massive sell-off that resulted in one of the worst liquidation events in its history.
On Friday, Bitcoin fell from $121,000 to $109,000 over a seven-hour period, erasing all gains made since the start.Until” rally. Ethereum fell to a low of $3,686 while Solana touched just above $173, according to CoinGecko data.
The volatile trading session triggered a “flash crash of liquidations,” wiping out nearly $7 billion across all markets in an hour, including $5.5 billion from long positions, said Sean Dawson, head of research at on-chain options platform Dervie. Decrypt.
After the dust settled, nearly $20 billion in liquidations across all digital assets were wiped out in a single day on Friday, with $16.7 billion in long positions making up the majority, according to CoinGlass data.
Overall, this is the “largest single-day wipe in crypto history,” Dawson said.
Stocks were also hit hard, with the Nasdaq falling 3.6%, the S&P 500 falling 2.7% and the Dow Jones falling 1.9%.
The sell-off in stocks and cryptocurrencies followed President Trump’s announcement that he was canceling a planned meeting with Chinese President Xi Jinping and ordered a “massive increase” in tariffs on Chinese imports – a move he acknowledged could be “potentially painful” for Americans.
Trump’s tariff warning came after Beijing moved to limit exports of rare earths and critical minerals, increasing tensions between the world’s two largest economies.
At the weekend, China seemed soften your positionwith analysts suggesting the market rout may have been fueled by a brief geopolitical overreaction.
“What we’re seeing is a rally of relief,” said Dean Serroni, CEO of crypto investment manager Merkle Tree Capital. Decrypt.
“Ethereum’s 11% rise is pure short covering and mean reversion after the market overreacted to Trump’s tariff bomb,” he said.
Serroni highlighted “weak” selling pressure amid a reset of open interest in derivatives markets after volatility peaked on “overleveraged derivatives traders.”
Bitcoin is up 5% on the day to $115,100 while Ethereum is up 10.5% to $4,138, according to CoinGecko data. Meanwhile, major altcoins including Solana, BNB, and Dogecoin are up 12%, 16.5%, and 11.4%, respectively.
“This rout was a geopolitical reflex, not a structural rupture,” Serroni said.
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