U.S.-China Tensions Spark $19B Crypto Liquidation
On Friday, a flash crash hit the crypto market, wiping out $19 billion in positions. This was the largest single-day liquidation in crypto history. The crash was triggered by rising U.S.-China trade tensions.
According to Santiment, President Trumpâs posts on Truth Social were the catalyst. Trump accused China of becoming âvery hostileâ and threatened to increase tariffs on Chinese goods. This led to a massive selloff in the crypto market.
Bitcoinâs price dropped from $124,000 to $104,100 in just a few hours. It later rebounded to $113,000. As of Sunday, Bitcoin was trading at $112,000, down 9% from the previous week.
Altcoins were hit even harder. Litecoin fell 51%, Toncoin 41%, and Dogecoin 39%. These prices partially recovered after the initial shock.
Bitcoinâs price fell 16% to $104,000 before recovering to $113,000. Over 1.6 million traders were affected.Of the $19 billion liquidated, with $16.6 billion from long positions and $2.4 billion from short positions.
The crash was a reminder that crypto remains vulnerable to sharp corrections. Santiment data showed a shift in retail sentiment to bearish expectations. if U.S.-China relations improve, crypto sentiment may follow. However, if tensions worsen, predictions of Bitcoin below $100,000 could become more common.
Simultaneously occurring, gold surged past $4,000 per ounce as traders sought safe havens.This highlights Bitcoinâs behavior as a risk asset during geopolitical tension.
