Crypto market crash saw a sharp decline following news of escalating geopolitical tensions. Investors began shifting from risk-taking to safer options, especially after US President Donald Trump announced new tariffs on eight European countries.
Following this news, cryptocurrency prices fell. Gold and silver set new records, while Bitcoin fell approximately 3.6% to below $92,000. Other coins suffered more losses.
Ethereum prices fell 4.9%, and Solana fell approximately 7.4%. The total crypto market size also declined, wiping out approximately 2.84% of its value, according to CoinMarketCap data.
According to CoinGlass, over $871 million in leveraged trades were liquidated in the past 24 hours. The majority of these were long positions, valued at approximately $787 million. Bitcoin alone saw liquidations of approximately $230 million, and Ethereum over $155 million.
According to DeFi researcher 0xNobler, some major crypto market crash companies and players, such as Coinbase, Binance, Wintermute, and a wallet linked to Trump’s close associates, took advantage of this opportunity. Together, these people sold more than 80,000 Bitcoins in just a few hours, the total value of which is said to be approximately $35 billion.
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Trump Threatens Europe. Markets React
Situation regarding Greenland has become more serious. President Trump announced on Saturday that a 10% tax will be imposed on goods coming from eight European countries starting February 1st. If no deal is reached by June, this tax could be increased to 25%.
Following this situation, European leaders held an emergency meeting on Sunday. French President Emmanuel Macron said that the EU should use its anti-coercion rules. This could mean limiting European markets for the US, imposing controls on exports, or some other response.
The EU is also considering imposing €93 billion in retaliatory tariffs on the US. These tariffs were previously halted after a temporary trade deal in July.
News of Trump new tariffs spread fear in the markets. Investors chose safe havens rather than risk aversion. Gold and silver prices hit record highs, while stock markets and cryptocurrencies suffered sharp declines. This decline erased all gains from the previous week.
Why This Matters
This sell-off makes it clear that cryptocurrencies are still quite sensitive to global shocks. Millions in value were wiped from the market in just a few hours, showing how deeply impacted world events are on crypto.
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People Also Ask – Crypto Market Crash:
Why do gold and silver fall when crypto prices fall?
People consider gold and silver to be safe commodities. When crypto or stocks fall, people panic and buy gold and silver to save their money. This causes their prices to fall.
What does it mean when leveraged positions are liquidated?
Sometimes people trade using borrowed money. If the market moves against them, the system automatically closes their trades. This causes them to suffer losses. This is called liquidation.
What impact does this have on crypto prices?
Some large companies and wealthy investors can move the crypto market. When these people buy or sell more crypto, prices move quickly up or down.
How do world events affect crypto?
When there is major tension, rule change, or political problem in the world, the crypto market also fluctuates. People panic and sell, causing prices to suddenly drop.
