Crypto liquidations drive historic market turbulence

Crypto liquidations drive historic market turbulence

By Blockworks
Friday saw dramatic crypto market activity in the hours after President Donald Trump threatened a new flare-up in US-China trade tensions.

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**Crypto Markets Plunge as Trump Trade Tensions Spark Historic Liquidations**

Cryptocurrency markets experienced unprecedented turbulence Friday following President Donald Trump's escalation of US-China trade tensions, triggering massive liquidations across Bitcoin, Ethereum, and major altcoins. The dramatic sell-off sent shockwaves through the digital asset ecosystem as traders rushed to exit positions amid mounting geopolitical uncertainty.

Bitcoin and leading cryptocurrencies faced intense selling pressure as automated liquidations cascaded through derivatives markets, amplifying volatility across decentralized finance (DeFi) protocols and centralized exchanges. The market upheaval highlighted crypto's continued sensitivity to macroeconomic factors and trade policy developments.

Blockchain analysts noted the synchronized nature of the downturn, with institutional and retail investors alike reassessing risk exposure in digital assets. The liquidation cascade affected both spot and futures markets, demonstrating the interconnected nature of modern cryptocurrency trading infrastructure.

Market participants are closely monitoring Bitcoin price action and trading volumes as the sector seeks stability. The event underscores the evolving relationship between traditional geopolitical risks and cryptocurrency market dynamics, with implications for future institutional adoption and regulatory considerations.

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Market Sentiment
positive
Category
bitcoin
Reading Time
1 min read
Article Type
Article
Topics & Keywords
#Market

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