$1.6 Billion in Crypto Liquidated Amid Extreme Fear: Here is Why Crypto is Dumping

• Bitcoin dropped below $86K, triggering $1.6 billion in liquidations as traders got wiped out.
• A $500M Bitcoin ETF selloff and Trump’s tariff threats fueled the market downturn.
• Between 286K and 367K traders were liquidated, with long positions taking the biggest losses.

Bitcoin tumbled below $86,000 for the first time since November, triggering a massive $1.6 billion liquidation spree in just 24 hours, according to Coinglass data.

What’s behind the plunge? A double blow from politics and institutional sell-offs.

Trump’s Tariff Threats & ETF Selloff Slam Crypto Markets

Bitcoin’s drop didn’t happen in a vacuum—it came after President Donald Trump renewed tariff threats against Mexico and Canada, fueling economic uncertainty.

• A $500M Bitcoin ETF selloff accelerated the downturn, causing widespread panic.
• Institutional outflows and shaky macro conditions drove Bitcoin to its lowest level in months.
• Between 286K and 367K traders were liquidated, with long positions taking the biggest hit.

This is the second major liquidation event this year, following a $2.2 billion wipeout on Feb. 3, 2025.

Who Got Hit the Hardest?

Bitcoin wasn’t the only casualty—other major cryptos also took a beating:

• Ethereum traders lost over $600M in February’s flash crash, while Bitcoin liquidations totaled $409M.
• XRP and other major altcoins followed suit, sinking deeper into the red.
• Leveraged traders were wiped out, repeating the pain from last month’s meltdown.

With institutional outflows increasing and political uncertainty rising, crypto markets remain on edge. For now, Bitcoin is stuck in a high-volatility zone—and traders are scrambling to stay afloat.