Digital asset markets came under intense selling pressure after U.S. President Donald Trump unveiled a new 15 percent global tariff policy, intensifying macroeconomic uncertainty and triggering widespread forced liquidations across leveraged crypto positions.
The renewed tariff push, implemented under Section 122 of the Trade Act of 1974, followed a previous legal setback in which the U.S. Supreme Court invalidated earlier emergency tariff measures. The fresh announcement unsettled global financial markets and amplified risk-off sentiment.
Major cryptocurrencies, including Bitcoin, Ethereum, BNB, XRP, Solana, TRON and Dogecoin, recorded significant declines during Monday’s trading session.
Bitcoin dropped approximately 5 percent, slipping below the $65,000 threshold, a key psychological support level that had previously underpinned bullish positioning. Ethereum mirrored the downward trajectory, contributing to a broader digital asset market contraction that pushed total crypto market capitalization below $2.3 trillion.
Data from liquidation trackers indicate that roughly $500 million worth of leveraged positions were forcibly closed within a compressed multi-hour window. Bitcoin accounted for approximately $232 million of those liquidations, while Ethereum represented around $126 million. Other datasets estimate total liquidations in the $460 million to $470 million range, reinforcing the magnitude of the deleveraging wave.
Market structure analysis shows that nearly 90 percent of liquidated positions were long trades, underscoring how heavily skewed bullish positioning amplified downside volatility once support levels broke.
Open interest in derivatives markets had remained elevated prior to the selloff, creating conditions for cascading margin calls as prices declined.
Analysts interpret the tariff escalation as a broader macroeconomic shock rather than an isolated trade adjustment. Investors appear to be factoring in potential retaliatory measures by other major economies, heightened geopolitical tensions including developments involving Iran, and shifting expectations regarding U.S. Federal Reserve rate policy.
While crypto assets retreated, traditional safe-haven instruments such as gold posted gains of over one percent during the same session, reinforcing the risk-off narrative.
The Crypto Fear & Greed Index plunged to an “extreme fear” reading of approximately 5 out of 100, reflecting a dramatic shift in market sentiment.
Despite the large-scale liquidation event, derivatives open interest remains elevated, suggesting that volatility risks have not fully dissipated.
Market participants are now closely monitoring whether the 15 percent tariff framework hardens into a prolonged trade policy stance or softens through negotiation, alongside signals from Federal Reserve officials regarding potential rate adjustments amid growth concerns.
The tariff-driven shock has effectively transformed macro uncertainty into one of the largest single-session liquidation events in recent months, exposing the vulnerability of a highly leveraged digital asset market.
