- The US tariff delay on Mexico and Canada triggered market volatility, leading to $552.80M in crypto liquidations within 24 hours, per CoinGlass.
- Both long and short traders faced great losses as sudden market shifts resulted in massive liquidations across crypto exchanges.
The uncertainty surrounding US economic policies has once again rattled the cryptocurrency market. The Trump government’s decision to suspend import taxes on Mexico and Canada has sent prices of Bitcoin and Ethereum skyrocketing.
For those who had expected an increase, this is welcome news on one hand. For individuals that gamble on short positions, this is a nightmare, though. Based on CoinGlass data, total liquidations in the cryptocurrency market over last 24 hours came to $552.80 million.
Longs and Shorts Both Get Hit: Liquidation Waves
Two groups have to incur great losses when the market swings dramatically. While bigger short positions reached $300.74 million, liquidations in long positions were $296.05 million. These are reflections of how merciless the price movement has been during the previous day, not only figures.
This phenomenon reminds one of the domino effect. Once an outside trigger—in this case a US government decision—digital assets lose value and cause several short seller liquidations. The fast price increase then also dragged long traders who lacked sensible stop-loss.
Bitcoin and Ethereum Soars, Surprised Investors
Apart from influencing the traditional economy, the US tariff policy directly impacted the cryptocurrency industry. Previously under pressure, Bitcoin quickly surged to burst through $101,800. Ethereum, meantime, also did not want to lose with a 13.3% rise to reach $2,840.
This is like a situation that has happened many times: economic instability causes money to flow to assets deemed “safer.” Though crypto itself is known to be volatile, some investors view it as a counterpoint against unclear rules.
Trump’s Choice: The Catalyst Driving This Rising Prices
What then precisely caused the market to react as such? As previously mentioned in our report, Trump’s approach of earlier declaring high import taxes on Mexico and Canada set the stage for all this. Nevertheless, following difficult discussions, the US administration at last delayed applying the tariffs for 30 days.
The response of the market was really quick. According to analysts, the delay has given the world economy a breath of fresh air, allowing financial markets—including cryptocurrency—to react with hope right away.
Regulations Keep Shaping Crypto’s Wild Ride
The next few days will still show great volatility. The crypto market is famously merciless towards careless traders. Will Bitcoin go through a dramatic correction or keep rising? That still marks a great uncertainty.
One thing is certain, though: changes in the market are always mostly caused by worldwide economic decisions like these. This reminds traders and investors that crypto is about more than just technical analysis; it also requires sensitivity to outside events including government regulations.
