Crypto Liquidation Tops $334M as Bitcoin and Ethereum Prices Crash
Crypto markets are undergoing a rough addition as traders react to tariffs and Trump’s Bitcoin reserve orders. Bitcoin fell 4.8% to $81,729, while Ethereum hit a higher rate, down 8% from hovering around $2,000. Dogecoin is the biggest loser among the top 10 cryptocurrencies, gliding 13% to $0.16.
Despite building strategic bitcoin reserves around Trump’s executive orders, the market has not responded positively. QCP Analyst believe This is because the actual budget has not been allocated to Bitcoin purchases, resulting in uncertainty among investors.
$334 million liquidation shakes the market
As the current situation continues to change, market declines triggered large-scale liquidation, and Bitcoin, Ethereum and XRP caused sell-offs. In the past 24 hours, liquidation has exceeded $334 million, affecting more than 109,704 traders. Those who bet prices rose took the biggest hit.
Bitcoin’s liquidation coins were $186.35 million, while long-term traders lost $123.21 million. Ethereum then liquidated $40.84 million, while XRP lost $7.3 million.
Altcoins such as Solana (Sol), Cardano (ADA), Dogecoin (Doge), Sui (Sui) and Litecoin (LTC) are also facing a huge sell-off, which increases the instability of the market.
Bitcoin, Ethereum and XRP fight
Bitcoin has dropped 3% in the past 24 hours and is now trading at $86,409. Despite a 1.9% increase last week, overall sentiment remains weak, with trading volume down 24.63%. Ethereum has been working to maintain critical support levels and is currently working to maintain over $2,000. Analyst Ali Martinez warned that if ETH drops below $2,114, it could test $1,250 in the coming weeks.
XRP is also under pressure, down 7.31% in the past 24 hours to $2.36. Uncertainty around crypto reserve plans only exacerbated further volatility.
Crypto reserve plan faces pushback
Trump’s proposals including ADA, XRP and SOL in the U.S. strategic reserves face resistance. Industry leaders, including Coinbase CEO Brian Armstrong and Real Vision’s Raoul Pal, believe Bitcoin should remain the main reserve. Armstrong believes that Bitcoin is the most obvious successor to gold, while PAL recommends using market-restricted indexes rather than Altcoin inclusion.
What is brewing?
Meanwhile, the latest U.S. government crypto disclosure shows that it has no SOL, ADA or XRP, which contradicts previous speculation. Crypto Czar David Sacks clarified that while a digital asset store will be created, it will only include assets acquired through forfeiture without new acquisitions. OnChain data confirms that the government owns 198,000 BTC, but provides no evidence of ADA, XRP or SOL Holdings.
Meanwhile, the government’s existing crypto reserves include 60,850 ETH ($122.96 million), 122 million and 40,293 BNB ($2.234 million). If liquidated, these assets may purify approximately 5,004 BTC. Sax hinted at redistribution of some digital assets into Bitcoin for portfolio optimization, strengthening the government’s Bitcoin-focused strategy.
As skepticism grows, crypto reserve plans may struggle to gain appeal, thereby increasing market turmoil.
