Bitcoin falls 7 percent to 82,000 dollars while crypto market liquidations surge during the opening of the Asian markets this Friday morning. Shalini Nagarajan reports that President Donald Trump’s announcement regarding his choice for the Federal Reserve, combined with a budget agreement, has generated extreme volatility across all current high-risk assets.
This bearish movement, which was driven by the forced closure of leveraged positions, caused 276,308 traders to lose their funds in 24 hours according to CoinGlass data. Long positions suffered the greatest impact, accumulating losses of 1.65 billion dollars, while short positions only recorded liquidations worth approximately 105 million dollars during this recent trading session.
Financial imbalance following political announcements in the United States
Within this high-tension scenario, Bitcoin led the losses with 826.63 million dollars liquidated, followed closely by Ethereum, whose 7.6% drop resulted in 428.48 million dollars in losses for investors. Other assets such as XRP and Solana were not immune to the crash, recording hits of 72.35 and 70.34 million dollars respectively after the market closed.
Likewise, uncertainty on Wall Street following Microsoft’s quarterly results, where the return on investment in artificial intelligence was questioned, pressured Nasdaq futures downwards today. Therefore, the total market capitalization decreased by 5.9 percent, standing at 2.88 trillion dollars, which reflects a massive flight of capital toward traditional safe-haven assets.
However, the corporate landscape presented significant contrasts, as while Microsoft lost 350,000 million dollars in valuation, Meta achieved a rebound thanks to targeted advertising. For this reason, investor sentiment remains fragmented, waiting for official confirmation of the new Fed leader, whose official identity will be revealed by President Trump this coming Friday afternoon.
How does American fiscal policy affect the cryptocurrency ecosystem?
The relevance of this fact lies in the convergence of monetary policy and government stability, given that the deal to avoid a shutdown reduced defensive speculation. This milestone represents a necessary adjustment, as the market was excessively leveraged in long positions, which eventually collapsed in the face of the renewed strength of the United States dollar.
On the other hand, Apple projected revenue growth of up to 16% for the March quarter, driven by iPhone demand in China recently. However, this positive news was not enough to calm investors, who preferred to maintain a posture of extreme caution amid uncertainty surrounding the main global cryptocurrencies that are currently being traded.
As the dollar rose 0.3% to stand at 96.441 units, the pressure on digital assets intensified notably during the last commercial trading day. This phenomenon forced thousands of operators to suddenly capitulate, forcing traders to search for much more solid support levels, while the MSCI Asia-Pacific index fell by 0.2 percent today.
In addition, Tesla’s intention to double its capital expenditure also contributed to the climate of instability, generating a prevailing nervousness in the global technology sector. This record increase in capital spending suggests greater competition for liquidity, which could limit the flow of money to the crypto market in the immediate short term.
Finally, the market is expected to remain cautious until the appointment of Jerome Powell’s successor in the entity is fully digested soon. Although the purge of long positions has cleared speculative excess, future stability will depend on how Asian markets absorb the selling pressure and the response of large institutional investors to these prices.
