Summary
- It was reported that approximately $300 million worth of forced liquidations occurred in the cryptocurrency market due to President Trump's EU tariff proposal remarks.
- Particularly, Bitcoin and Ethereum experienced liquidation pressure shortly after a surge in buying interest, with BTC plummeting from a peak of $110,000.
- Experts analyzed that Trump's remarks increased geopolitical uncertainty, serving as a correction to curb market overheating.
According to cryptocurrency media outlet CoinDesk on the 23rd (local time), approximately $300 million worth of forced liquidations occurred across the cryptocurrency market following U.S. President Trump's proposal for tariffs on the European Union (EU).
Earlier that day, President Trump proposed imposing a high tariff of 50% on the European Union starting next month. Subsequently, global stock and asset markets have been on a downward trend.
According to market analysis platform CoinGlass, most of the liquidations occurred in long positions (betting on a rise), with pressure to liquidate emerging shortly after a surge in buying interest, particularly in Bitcoin (BTC) and Ethereum (ETH), leading to concentrated losses.
In particular, BTC sharply declined after touching a peak of $110,000, resulting in the liquidation of short-term bulls.
ETH also followed a similar pattern, experiencing a price retracement. CoinGlass explained, "This liquidation is one of the largest in the past month."
Market experts analyzed that "Trump's remarks have heightened geopolitical uncertainty, rapidly diminishing risk asset preference," and "as this issue arose right after the cryptocurrency market hit an all-time high, it can be interpreted as a correction to curb short-term overheating."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
