The broader crypto market followed major stock indexes with notable losses on Friday following a renewed trading feud between China and the United States. The crypto market cap fell about 2% on Friday, hovering around $4 trillion at the time of writing.
The price of Bitcoin (BTC) fell 3% to trade below $119,000, while the price of Ethereum (ETH) fell more than 6% to trade around $4.1,000 at the time of writing. The Dow Jones was down about 500 points today, trading at around 45,908, while the NASDAQ was down 2% and hovering around 22,552 at the time of writing.
Crypto Liquidations Nearly Top $1 Billion
After the sudden market sell-off on Friday, 203,684 traders were liquidated, with more than 881 million racks. According to market data from MintGlassthe largest single liquidation order occurred on Hyperliquid involving BTC-USDT, worth approximately $15.5 million.
Notably, over $709 million involved long traders, fueling bearish sentiment via a long squeeze. Meanwhile, on-chain data analysis is from Look at chain shows that the Bitcoin OG, which became popular last month by selling BTC for ETH, has benefited from yesterday’s BTC short, where the cumulative unrealized gain exceeded $35 million.
Why did the crypto market fall today?
Renewed feud between China and the US
The main reason why the crypto market dumped heavily on Friday was due to the new trade feud between China and the United States. On Friday, President Trump threatened to hit China with massive tariffs as China imposed export controls on its rare earth metals, including magnets.
Earlier this year, crypto assets experienced prolonged choppy markets after President Trump imposed additional tariffs via executive orders.
Long-term US government shutdown delays crypto legislation
The crypto market suffered from bearish sentiment on Friday, partly influenced by the ongoing standoff between Democrats and Republicans. The US SEC has already missed the latest deadline to decide on a spot crypto ETF amid the ongoing government shutdown.
Meanwhile, there is ongoing gridlock in Congress expected to delay the CLARITY Act, with some reports indicating hostility due to bipartisan support.
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