The crypto market suffered a sharp downturn on Saturday, wiping out billions of dollars in value and marking one of the largest single-day drops in recent history. Experts say traders who leveraged their positions to invest heavily in cryptocurrencies were forced to liquidate, sending prices into free fall.
“The amounts that people have lost are varying,” said Joshua Duckett, director of investigations at a crypto forensic firm. “Some people lost hundreds, thousands, millions – the total in terms of liquidations extends into the billions.” Leveraged trading, which involves borrowing to increase exposure, was a key driver of the losses.
As traders were forced to unwind their positions, it triggered a chain reaction of cascading liquidations. Bitcoin fell below $110,000, while Ethereum and other major tokens lost more than 20% of their value within hours. The sudden collapse followed the U.S. government’s announcement of new tariffs on Chinese tech imports.
Despite the dramatic drop, there are early signs that the market may be stabilizing. “Tomorrow is a new day,” Duckett said. However, it’s essential to remember that investors should never invest more than they can lose and research what they’re investing in.
Source: https://www.foxbusiness.com/markets/crypto-bloodbath-wipes-out-billions-signs-stabilization-emerge-says-expert