Cryptocurrencies record biggest single-day drop

2025-02-04 04:04:53

(MENAFN) Global cryptocurrency markets faced their largest single-day drop ever, with over $2.24 billion in liquidated trading positions in just 24 hours, according to Coinglass. Liquidation occurs when a trader’s position is forcibly closed due to insufficient funds, often triggered during a margin call.

More than 730,000 traders were affected, with 37% of liquidations occurring on Binance, the largest crypto exchange by user base. Other affected platforms included OKX, Bybit, Gate.IO, and HTX.

Many crypto media outlets pointed to new tariffs imposed by US President Donald Trump on imports from Canada, Mexico, and China, as a key factor behind the sell-off. Trump's additional tariff threats on the EU and UK also contributed to a wider market downturn, triggering a wave of risk asset liquidations.

Among top cryptocurrencies, Ether saw the steepest fall, dropping by 20% to $2,520, before recovering to $2,611. Bitcoin dropped 6.5%, hitting $92,500, but rebounded to $95,484. Other coins, like Cardano and Ripple, also experienced significant losses, with Cardano falling over 19% and Ripple dropping 16%.

Overall, the total cryptocurrency market cap shrank by 9%, reaching $3.24 trillion, with $401 billion in trading volume over the last 24 hours.

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