Talks of tariffs on US trade partners triggered a sharp downturn in digital assets and significant volatility in financial markets over the weekend and into Monday morning.
On Saturday, President Trump announced via Truth Social that he had imposed a 25% tariff on imports from Mexico and Canada, and an additional 10% tariff on China.
Immediately following Trump’s announcement, Bitcoin (BTC) lost the $102,000 level and plunged as low as $92,776 on Coinbase.
According to crypto data aggregator Coinglass, over $2.27 billion was liquidated, mostly by traders trying to leverage long Bitcoin positions.
However, according to ByBit CEO Ben Zhou, the real amount of liquidations was likely up to four times higher.
Posting on the social media platform X, Zhou says over $2 billion was liquidated on ByBit alone, meaning Coinglass’s numbers are inaccurate, likely because of limitations in the APIs that feed the liquidation data.
“I am afraid that today’s real total liquidation is a lot more than $2B, by my estimation it should be at least around $8-10b. FYI, Bybit 24hr liquidation alone was $2.1B.
As you can see in below screenshot, Bybit 24hr liquidations recorded on Coinglass was around $333m, however, this is not all of the liquidations. We have api limitation on how much feeds are pushed out per second. From my observation, other exchanges also practice the same to limit liquidation data. Moving forward, Bybit will start to PUSH all liquidation data. We believe in transparency.”
After markets reacted to the tariff news, Trump announced that after a “friendly” conversation with Mexican President Claudia Sheinbaum, they agreed to postpone the tariffs for one month to allow for negotiations. Sheinbaum confirmed the conversation happened, and that Mexico also agreed to send 10,000 troops to the Southern border to prevent the trafficking of fentanyl into the US.
Trump is also reportedly set to meet with Canadian Prime Minister Justin Trudeau.
Markets have recovered slightly since news of progress in tariffs talks, with BTC nearly re-tagging the $100,000 level and the major stock indices only down marginally compared to Friday’s close. However, most altcoins are still down big from their all-time highs and struggling to gain momentum.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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