Bitcoin and the altcoins have plummeted over the past day, leading to the liquidation of a large number of crypto longs in the derivatives markets.
The Crypto sector has seen a remarkable number of liquidations in the past day
According to data from MintGlassThe past day’s volatility in the crypto market has been accompanied by a slew of liquidations. The “liquidation” of a contract occurs when losses accumulate to a certain extent and are forcibly stopped by the exchange. In the digital asset industry, volatility is typically high, resulting in a large number of liquidations taking place on a regular basis. There was such a volatile event in the last 24 hours, as the table below shows.
In total, the crypto market experienced $874 million in liquidations within this period. Of this, long contracts have made up for an overwhelming portion: $788 million.
The reason the liquidations are so lopsided obviously lies in the price action that has developed over the past day. Bitcoin saw a sudden drop from $95,500 to a low of $93,000, while Ethereum went from $3,350 to $3,200. In percentage terms, these declines are not too large, but their rapid nature has led to the liquidations.
The source of the crash could lie in the revived tariff tensions between the US and the EU. As reported by ReutersPresident Donald Trump this weekend promised to impose tariffs on eight European countries.
From February 1, goods from Denmark, Great Britain, Norway, Sweden, France, Germany, the Netherlands and Finland will face an additional import tariff of 10%. If the US is not allowed to acquire the Danish territory of Greenland, these tariffs will rise to 25% on June 1.
2025 has already seen several events where rate-related uncertainty impacted the crypto market, so it is not surprising to see that the latest news has also been accompanied by volatility. As is usually the case, the latest market volatility has led to Bitcoin-related contracts taking up a disproportionate share of liquidations.
As visible in the heatmap above, Bitcoin has seen liquidations of approximately $233 million in the past day. Ethereum, the next coin in this category, involves $156 million in contracts.
Among altcoins, Solana, XRP and Dogecoin rank the highest with $61 million, $41 million and $35 million in liquidations respectively. SOL being ahead of XRP despite having a smaller market cap could be due to the fact that its 6% drop is bigger than the latter’s 4% drop.
Bitcoin price
Bitcoin has seen a slight rebound from its lows as the price of the cryptocurrency is now back at $93,100.