$754M Crypto Bloodbath: Bitcoin & Ethereum Lead Market Carnage as Traders Get Rekt

Crypto markets just took a brutal haircut—liquidations scream past three-quarters of a billion dollars as Bitcoin and Ethereum lead the nosedive. Altcoins didn't escape the slaughter either, proving once again that 'diversification' is just a fancy word for losing money slower.

When the dominos start falling, they don't discriminate. Longs got liquidated, shorts got squeezed, and your average 'degen' probably just learned the hard way why leverage is called 'financial heroin'.

Meanwhile, Wall Street's crypto tourists are suddenly remembering they have 'risk management' departments—right after their algorithmic traders got front-run by a 19-year-old with a Binance API key. Stay humble, stack sats, and maybe reconsider that 100x altcoin futures position.

U.S. Tariffs and Fed Policy Spark Risk-Off Sentiment in Bitcoin and Altcoins            

The sell-off coincides with new U.S. tariffs and the Federal Reserve’s hawkish monetary stance. President Trump’s administration implemented tariffs of up to 50% on key materials, escalating global trade tensions.

The Fed also held interest rates steady at 4.25–4.50% for the fifth time, signaling prolonged high-rate conditions that dampen risk appetite.

These developments triggered a retreat from speculative assets like crypto. The crypto market’s relative strength index (RSI) fell to 35.4, and total open interest dropped 3% to $193 billion, indicating a broader market weakness.

On-chain activity has added to the anxiety. Five dormant Bitcoin miner wallets from 2010 suddenly moved 250 BTC (≈$30M), sparking concerns about impending sell pressure. Meanwhile, short-term holders continue to capitulate, selling BTC at a loss.

High-profile liquidations added to the drama. Prominent trader AguilaTrades reportedly lost nearly $40 million on Hyperliquid after a leveraged BTC position collapsed. Other high-risk players, including James Wynn, also faced multi-million-dollar liquidations.

In contrast, savvy traders like 0xCB92 profited by shorting ETH with 20x leverage, earning over $3.7 million, underscoring the extreme volatility and high-stakes nature of the current market.

Despite the chaos, long-term investor sentiment remains watchful but intact. Still, with macro headwinds, whale wallet movements, and leverage-based volatility, the road ahead remains rocky for crypto bulls.

Cover image from ChatGPT, BTCUSD chart from Tradingview