The euphoria of the past few weeks has suddenly transformed into debacle for investors in crypto. In just 24 hours, more than a billion dollars in positions have been liquidated, and carried with them the hopes of a prolonged rebound on the market. At the origin of this shock, a new wave of economic uncertainty, amplified by the decision of the United States to impose 25 % of customs tariffs on Canada and Mexico. An announcement that caused a sudden fall in traditional markets, but also a collapse of bitcoin and the main cryptos.
A crisis market: figures for a flash collapse
The last 24 hours have been a real nightmare for Crypto derivative traders. The collapse has mainly affected long positions, which represent 87 % of the liquidations recorded. Bitcoin has thus seen nearly $ 300 million in liquidated positions, while altcoins have not been spared: Solana (soil), XRP and Cardano (ADA) holders alone suffered more than $ 150 million in losses, according to Coinglass data.
This shock intervenes in an already feverish climate. Indeed, on March 4, Donald Trump announced the establishment of new commercial taxes, which precipitates the fall of the S&P 500, one of the main American stock market indices, which plunged almost 2 % in morning session. The reaction was not long in the Crypto market. After a spectacular flight, investors were taken short by this announcement, which started a cascade of automatic liquidations. This type of event recalls how extremely extremely sensitive to external shocks.
A turning point for the market: the end of the “Trump Effect”?
Beyond the simple technical correction, this episode could mark a real change of trend. Since the American presidential election, Bitcoin and the Crypto market in general had benefited from bullish momentum, widely attributed to the promises of Donald Trump to support the sector. The Bitcoin Prize had gone from $ 69,374 in November to a record of 108,786 dollars in January, in a climate of optimism reinforced by the prospect of a professional policy of the new administration.
However, recent events show that macroeconomic dynamics have now taken over the Trump effect. The prospect of a trade war between the United States and their partners swept the enthusiasm of investors and reintroduces a major downward pressure on cryptos. Can this new deal asks an essential question: can cryptos still be considered as refuge values, or have they become dependent on global economic tensions?
The coming days will be essential to measure the impact of this correction and see if the market can stabilize. Between regulatory uncertainties, fluctuating economic policies and fragile market feeling, volatility may still be there. One certainty remains: this shock reminds all investors that, in the world of cryptos, nothing is ever acquired.
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