In a turbulent start to the week, the cryptocurrency market faced significant upheaval, with over $864 million in liquidations recorded in the past 24 hours, as reported by data aggregator CoinGlass. This wave of forced sell-offs affected more than 241,000 traders, predominantly those holding optimistic long positions, which accounted for roughly $782 million of the total losses.
The broader market capitalization of cryptocurrencies dipped by nearly 3%, settling at approximately $3.2 trillion, according to CoinGecko.
Bitcoin, the flagship digital asset, spearheaded the downturn, tumbling from highs above $95,000 to around $92,000. This slide triggered $229 million in Bitcoin-related liquidations.
Ethereum wasn’t far behind, with $153 million wiped out in similar forced closures. Highlighting the severity, the single largest liquidation involved a $25.8 million BTC-USDT trade on the Hyperliquid platform.
The catalyst for this market mayhem appears rooted in heightened geopolitical friction.
President Donald Trump‘s recent ultimatum has stoked fears of a brewing trade conflict between the United States and the European Union.
Trump proposed imposing a 10% tariff on imports from several key NATO allies starting in February, with an escalation to 25% by June if talks falter.
The demand centers on Denmark relinquishing control of Greenland, which Trump described as essential for bolstering U.S. defenses against expanding international influences and advancing the “Golden Dome” missile shield initiative.
He emphasized that these European nations have enjoyed prolonged benefits from American security umbrellas without adequate reciprocity.
Market observers noted the rapid descent unfolding late Sunday evening.
Bitcoin’s price plummeted from $95,500 at 5 p.m. ET to $92,474 by 9 p.m., marking a swift 3% drop within hours.
Major altcoins mirrored this trajectory: Ethereum, XRP, and Solana all registered comparable declines, amplifying the sector-wide pressure.
In the four hours leading up to the report, long positions alone saw over $750 million in liquidations, underscoring the panic-driven sell-off fueled by trade war anxieties.
Analysts have linked this fragility to broader sentiment shifts. Min Jung, an associate researcher at Presto Research, explained that cryptocurrencies are underperforming compared to traditional risk assets.
“Despite the dominant influence of U.S.-EU trade war worries on investor mood, indices like the KOSPI are holding steady or even gaining ground,” Jung noted.
“This highlights ongoing crypto-specific vulnerabilities, where capital is flowing toward other high-risk opportunities amid a general market upswing, leaving digital assets as the outlier.”
The proposal has ignited backlash across Europe. Leaders from the targeted countries—Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland—have condemned the move as coercive tactics.
Reuters cited officials labeling it “blackmail” and cautioning against a “perilous erosion” of longstanding transatlantic alliances.
This diplomatic standoff adds another layer of uncertainty to an already skittish crypto ecosystem, where external macroeconomic and political events continue to exert outsized influence.
As traders digest these developments, the market’s recovery most likely hinges on de-escalation efforts. With Bitcoin hovering near support levels (of around $90,000 for now) and further liquidation risks lingering, investors are advised to monitor geopolitical developments closely.