- Bitcoin Price dropped rapidly by $12,000 in minutes, triggering one of the largest liquidations in crypto market history.
- Over $9.6 billion in trading positions were liquidated in 24 hours, with almost $7 billion lost in just one hour.
- Other major cryptocurrencies like Ethereum, XRP, BNB, and Solana suffered even larger declines, leading to a $500 billion loss from the overall crypto market.
- The sell-off was linked to new 100% tariffs on Chinese imports announced by Donald Trump, increasing market volatility.
- Experts warned that Bitcoin‘s dramatic price swings, especially outside standard trading hours, pose risks for holders of Bitcoin ETFs that cannot trade continuously.
The price of Bitcoin experienced a sharp decline, falling by $12,000 within minutes in a sudden crash. This event caused significant disruption across the global cryptocurrency market, with traders facing rapid losses. The flash crash occurred shortly after Donald Trump announced new 100% tariffs on imports from China, increasing uncertainty and volatility.
According to market data, the price of Bitcoin dropped from just under its all-time high of $126,000 to below $110,000. Other leading cryptocurrencies, including Ethereum, XRP, BNB, and Solana, also saw major losses. These moves wiped out roughly $500 billion from total crypto market value within a single day.
“A flash crash of liquidations saw almost $7 billion wiped across all markets within one hour, with $5.5 billion coming from longs,” said Sean Dawson, head of research at Derive.xyz. “Bitcoin and ethereum accounted for $3.3 billion of those liquidations. In total, almost $9.6 billion in positions have been liquidated over the past 24 hours, marking the largest single-day wipeout in crypto history,” he added.
Lark Davis, a crypto market analyst, noted that over $19 billion in liquidations took place in a single day, calling this event worse than previous collapses led by Covid or the FTX exchange. “It’s a sad day for the market and a lot of people are hurting,” Davis wrote in a market note.
Analysts at 10x Research stated that the recent sell-off was set off by Trump’s announcement of a new China tariff deadline, which increased volatility and drove Bitcoin toward $100,000. “With $8 billion in forced liquidations, altcoins collapsing multiple times more than bitcoin, and funding rates turning deeply negative, the setup is both chaotic—and full of opportunity,” they commented.
Concerns also rose over the risks faced by holders of Bitcoin exchange-traded funds (ETFs), such as BlackRock‘s near-$100 billion IBIT. Since these ETFs only trade during traditional stock market hours, investors could not react to the flash crash, while traders with direct Bitcoin accounts could continue to trade and manage risk over the weekend.
Tommy Doyle, global head of relationship management at Xapo Bank, explained, “The extreme volatility in the price of bitcoin overnight highlights why institutional investors increasingly view access to 24/7 liquidity as essential to prudent risk management.”
The crash unfolded amid broader economic challenges, with analysts pointing to sliding oil prices and changing treasury yields. The sudden volatility has brought new attention to market structure and risk management in the crypto sector. For more context and market updates, see Forbes’ CryptoCodex newsletter.
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