The cryptocurrency market has seen a drastic fall for two days in a row. Reports suggest this downturn comes in the wake of President Donald Trump‘s imposing 100% tariffs on China.
On Sunday, the total market capitalization of the crypto market has plummeted to $3.7 trillion, down from a historic high of $4 trillion just last week. The trading volume currently stands at $250.02 billion, as indicated by CoinMarketCap data.
Bitcoin (CRYPTO: BTC), the leading cryptocurrency globally, was valued at $1,11,660.41, while Ethereum (CRYPTO: ETH) was priced at $3,817.26. The wider crypto market experienced a 0.89% fall over the past 24 hours, adding to a seven-day decline of 11.5%.
Market analysts are attributing this downturn to the geopolitical disturbance caused by Trump’s tariffs on China and the restrictions on US software exports, which have ignited fears of a potential trade war.
According to Coinglass data, over $19 billion in bets have been wiped out, with more than 1.6 million traders facing liquidation. Remarkably, nearly $7 billion of those positions were cleared within just an hour of Friday's trading.
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"The focus now turns to counterparty exposure and whether this triggers broader market contagion," Brian Strugats, head trader at Multicoin Capital told Bloomberg.
There was an 18% drop in open interest among traders as they moved away from risky positions, signaling a low appetite for investment in the crypto market.
Analysts believe this fall is a result of a mix of macro shockwaves and extreme leverage, marking the worst day for crypto since Q1 2025.
According to the data, the Bitcoin was trading at $111,773.13, down by almost 11% in the last seven days. Similarly Ethereum was trading at $3,842.09, down by 16% in the last seven days.
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