The crypto market faced a sharp selloff overnight as renewed trade conflict fears between the United States and the European Union shook global risk sentiment. Bitcoin and major altcoins reversed recent gains, with traders reacting to fresh tariff headlines and the possibility of escalating economic retaliation on both sides of the Atlantic.
While crypto is often viewed as a separate market, this move once again showed how quickly digital assets can behave like high-beta risk trades when macro uncertainty spikes.
According to analyst Darkfost, the liquidation impact was immediate and aggressive. More than $800 million worth of leveraged positions were wiped out in a matter of hours, including roughly $768 million in long liquidations.
"What stood out most was where the damage occurred. Darkfost noted that Hyperliquid recorded the largest share of forced liquidations, with $241 million, while Bybit followed closely with $220 million."
Darkfost warns that the timing of this selloff matters as much as the liquidation size. As soon as CME trading opened, Bitcoin saw a sharp downside move, suggesting that institutional flows and macro-linked positioning played a direct role in the shakeout.
The message is straightforward: stay cautious and avoid overexposure to leverage while the macro backdrop remains unstable. Liquidations can create sharp bounces, but they can also reset momentum quickly if fear spreads across risk assets.
The red long-term moving average is rising near the low-$90,000s, acting as a potential dynamic support zone. If Bitcoin holds above that level, it keeps the recovery structure intact and prevents a deeper reset toward prior liquidity pockets.
Featured image from ChatGPT, chart from TradingView.com
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