Biggest Crypto Liquidation Ever Sees $16B Longs Decimated Amid Market Chaos

Core Insights - The crypto market experienced significant liquidations, with over $16 billion wiped out in long positions following U.S. President Trump's threat of 100% tariffs on Chinese imports, leading to a global risk-off sentiment [1][2][3] - Bitcoin and Ether saw notable price fluctuations, with Bitcoin recovering to $113,294 and Ether to $3,844 after a brief drop below $110,000, marking a 10% decline in 24 hours [2][3] - The total market capitalization of crypto fell to $3.87 trillion, with approximately $16.7 billion of the $19.1 billion in liquidations coming from long positions [3][4] Market Dynamics - The recent crash resulted in the largest volume of liquidations in the crypto market, surpassing previous significant events such as the FTX collapse in 2022 and the early COVID lockdowns, although the percentage impact is less significant due to market growth since 2022 [4][5] - CoinGlass reported $19.13 billion in liquidations, suggesting the actual total could be higher due to slower reporting from major exchanges like Binance [5][6] - The U.S. government shutdown has delayed key economic data releases, adding to trader anxiety amid renewed trade war rhetoric [6]