- CoinGlass showed about $19.1B in liquidations with roughly $16.7B from longs, as tariff headlines sparked a fast deleveraging across majors.
- BTC dipped under $110k before rebounding near $113,294, while ETH held around $3,844 and the CoinDesk 20 Index moved lower by about 12.1%.
- Stablecoin signals stayed orderly as USDe briefly printed $0.9996, while data delays from the U.S. shutdown added uncertainty to price discovery.
Crypto liquidations accelerated during early Asia hours after a Truth Social post from U.S. President Donald Trump threatened 100% tariffs on Chinese imports, setting off a risk-off move that erased more than $16 billion in long positions by midday Hong Kong time and pushed bitcoin below $110,000 before a recovery to $113,294 while ether bounced to $3,844 and the CoinDesk 20 Index slipped 12.1% as total crypto market value fell to $3.87 trillion and traders faced a data vacuum from the U.S. government shutdown that delayed key releases.
Crypto liquidations tied to tariff shock in Asia hours
The catalyst was clear and fast. A tariff threat at 100% landed during the Asia session and tightened global risk appetite. Order books thinned, and longs unwound across major venues. Prices tracked lower as crypto liquidations fed on themselves. By midday in Hong Kong, wiped long positions topped $16 billion. The move ranked as one of the year’s sharpest long drawdowns for BTC, ETH, and other large caps. Spot and perps showed the same direction while basis narrowed. Liquidity pockets broke, then rebuilt as bids returned near round levels.
The scale invites comparison with prior breaks. Friday’s notional liquidations eclipsed those seen during the 2022 FTX failure and the early 2020 lockdown shock by more than ten times in dollar terms. Percentage damage looked smaller because market size grew since 2022. That context matters for risk systems and stops. Leverage sat higher into the headline, so forced selling hit quickly. Market depth recovered as spreads normalized, yet positioning stayed lighter into the U.S. morning.
Market metrics after the flush
Bitcoin slipped under $110,000 intraday, then recovered to $113,294. Ether printed $3,844 after the bounce. The CoinDesk 20 Index fell 12.1% on the session. Total market capitalization reached $3.87 trillion at the trough. CoinGlass posted $19.13 billion in total liquidations, and the desk noted the final figure may exceed that estimate because Binance reports more slowly than other platforms. Of the $19.1 billion number widely quoted, about $16.7 billion came from longs. Those splits show where the pressure sat.
Stablecoin behavior stayed orderly but not static. Ethena’s USDe ticked to $0.9996 at the lows. That mild move still flagged peg attention when derivatives swing. The team said minting and redemptions ran without interruption and that overcollateralization improved as short PnL realized. Funding levels cooled, and basis compressed into later hours. Skew turned less aggressive as market makers hedged gamma and rebuilt size on both sides of the book.
Crypto liquidations reveal leverage and stablecoin stress
Derivatives structure set the tone. Elevated long exposure met a sudden macro jolt, and crypto liquidations cleared excess size in minutes. Perpetuals led spot lower as forced sells chased bids. Liquidation cascades showed on public trackers and venue tapes. Once the first wave passed, resting demand appeared near key handles. That response limited follow-through and allowed a measured rebound. The pattern fit prior stress days, yet the dollar amounts stood out, again due to a larger base.
Stablecoins offered a quick read on system health. USDe’s print at $0.9996 stayed within a tight band, which helped keep confidence steady while crypto liquidations unfolded. Treasury and hedge mechanics mattered here. Short hedges that gained during the drop improved collateral ratios. Issuers communicated status, which calmed flows. That clarity helped prevent slippage from becoming a narrative risk. Spot books then found balance as funding normalized and basis moved back toward neutral.
Data gaps from shutdown and exchange reporting
Macro traders wanted official releases to guide risk, but the U.S. government shutdown delayed several data prints. Markets had to work without those indicators while tariff rhetoric returned to headlines. In that setting, positioning and technical levels took priority. Venue reporting also shaped the tape. CoinGlass flagged $19.13 billion in liquidations yet added that the true total likely ran higher because Binance, the largest exchange, posts more slowly. That lag can understate real-time stress when crypto liquidations hit peak velocity, then revise as venues finish their runs.
Price paths reflected those frictions. Bitcoin closed the session still down over the prior day despite the bounce to $113,294. Ether held $3,844 into the close. Depth improved on majors, though alt pairs stayed thin. Implieds cooled after the spike but remained above midweek marks. Desk commentary pointed to smaller clip sizes and wider caution on leverage. Traders cut risk and waited for policy signals and any update on shutdown timing before rebuilding exposure in size.
Conclusion
The session showed how a single tariff headline can trigger crypto liquidations that move billions through derivatives in a short window, with longs taking about $16.7 billion of the $19.1 billion total as bitcoin dipped under $110,000 before settling near $113,294, ether recovered to $3,844, the CoinDesk 20 Index slid 12.1%, total market cap touched $3.87 trillion, USDe printed $0.9996, and reporting gaps plus a shutdown-driven data void kept price discovery cautious into the next session.
Disclaimer
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