Crypto liquidations reach $1B as markets decline

More than $1 billion in cryptocurrency liquidations occurred in the past 24 hours, with traders facing steep losses amid concerns over a potential trade conflict, according to data from CoinGlass.

The majority of liquidations, over 87%, were from long positions as digital asset prices fell sharply following recent gains.

On March 4, US President Donald Trump imposed 25% tariffs on Canadian and Mexican imports, triggering a nearly 2% drop in the SP 500 index during early trading.

Bitcoin (CRYPTO:BTC) fell to around $82,000 after briefly surpassing $93,000 on March 3, according to Google Finance data.

Other cryptocurrencies experienced even steeper declines, with Ether dropping about 12% and Solana losing 20% of its value.

The market reversal followed optimism surrounding Trump’s March 2 comments about creating a US crypto reserve, which was expected to include Bitcoin, Ether (CRYPTO:ETH), XRP (CRYPTO:XRP), and Cardano (CRYPTO:ADA).

According to CoinGlass, Bitcoin long positions saw the largest liquidations, exceeding $300 million in 24 hours.

Altcoins, including SOL, XRP, and ADA, collectively accounted for over $150 million in liquidations.

These assets had previously seen gains after Trump’s remarks about their inclusion in a potential national crypto reserve.

The recent downturn threatens to erase gains from the so-called "Trump effect," which saw Bitcoin rise from $69,374 on Election Day to a record $108,786 by January 20.

Since then, Bitcoin has declined, dipping below $80,000 on February 28, reflecting a 26% drop.

Market analysts suggest that broader economic concerns, such as a potential trade war and weakening global conditions, could overshadow recent positive developments in the crypto industry, including the US Securities and Exchange Commission's dismissal of several lawsuits against crypto firms in February.