Key Insights:
- Bitcoin drops below $112K as 1.6 million traders face liquidations during historic $19B wipeout.
- Trump’s 100% China tariff threat sparks sharp crypto selloff and largest liquidation event ever.
- Analysts see possible short-term bounce before a full trend reversal begins across crypto markets.
The crypto market recorded its largest liquidation event on record after a sudden drop triggered by rising global trade tensions. More than $19.13 billion was wiped out in a single day, according to data from CoinGlass. Over 1.6 million traders were liquidated as positions were forcefully closed across major exchanges.
The sell-off followed comments from former U.S. President Donald Trump, who proposed a 100% tariff on Chinese imports. The announcement hit risk markets immediately, leading to cascading liquidations in crypto and triggering a sharp decline in asset prices.
Bitcoin Falls Below $112K, Altcoins Drop Sharply
Bitcoin dropped to $111,802, losing around 8% in 24 hours. Ethereum fell even more, down over 12% to $3,778. Both assets broke below key support levels that had held for weeks, leading to additional selling across the board.
Losses extended across altcoins. Binance Coin (BNB) dropped 13%, Solana fell 16%, and Cardano lost 20%. XRP is now at $2.42, down nearly 14%. Dogecoin, TRON, and other mid-cap tokens also saw double-digit losses, with selling pressure seen across the entire sector.
Analysts Point to a Possible Short-Term Rally
Economist Henrik Zeberg said the current drop may create conditions for one final move higher. “Final rally before the fall,” he said, noting that crypto often sees sharp surges before a larger trend reversal. He linked the setup to weak U.S. economic data and the potential for a short-lived drop in the dollar.
Zeberg explained that falling non-farm payroll numbers could support a bounce in risk assets. He added that most of the strongest crypto moves come during this late stage in a cycle, often driven by fear of missing out. Still, he warned that any rally may not last long.
Key Technical Zone Now in Focus
Market analyst Michael van de Poppe said Bitcoin’s trend depends on whether it holds the 20-week moving average, which is currently near $112,000. “If it stays above this level and begins to rebound,”
He said,
“This drop could mark the final capitulation phase.”
Price action in the coming days will show if this is a short-term flush or the start of a deeper decline. For now, traders are watching Bitcoin’s ability to reclaim support and stabilize above key levels.
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