The cryptocurrency market is currently undergoing one of its most severe downturns. Since April 2, developments have surprised and worried participants in the market. On the first day of the week, nearly all major cryptocurrencies, from Bitcoin 
$74,689 to Ethereum 
$2,029, Dogecoin 
$0.099114 to Solana 
$82, incurred double-digit losses. Experts identify the aggressive tariff policies of the United States as the primary cause of this decline.
The Market Bleeds: Value Loss Exceeds 10%
As of the morning of April 5, the total cryptocurrency market capitalization stood at approximately $2.65 trillion. However, after the declines experienced over the weekend and in the early hours of the day, this figure plummeted by over 10% to around $2.37 trillion.
The largest cryptocurrency, Bitcoin, suffered a 9.5% loss within 24 hours, making it one of the most affected assets. Ethereum, on the other hand, faced an even steeper decline, with losses nearing 20%. The situation with Bitcoin and Ethereum has heightened fears among cryptocurrency holders, triggering panic selling.
The situation is even more striking among altcoins. Solana dropped by 18.4%, XRP by 20.5%, Dogecoin by 19%, and Cardano 
$0.237915 by 17.9%. Additionally, Chainlink 
$9 lost 19.33%, Avalanche 14.1%, Stellar 19.3%, and Shiba Inu 14.2%. The average loss among assets outside the top 10 was around 16-17%.
Nearly $1.5 Billion Liquidated in Leveraged Positions
Alongside the sharp price drop, there has been significant liquidation in leveraged trading over the last 24 hours. The total liquidations reached approximately $1.5 billion, with $1.24 billion coming from long positions created in anticipation of price increases. Such liquidations occur when investors are unable to meet margin requirements, leading exchanges to forcibly close positions.
Data shows that approximately 86% of the liquidated positions were long, indicating that most investors believed prices would rise. However, contrary to expectations, the prices fell sharply, causing significant losses. Only in Bitcoin, $432 million vanished from long positions, and in Ethereum, $344 million was lost. Altcoins like XRP and Solana also saw over $150 million in liquidations.
These figures highlight the considerable risks in the market for leveraged traders. Especially during periods of heightened volatility, investors who do not act cautiously may face heavy losses.
Economic War Worries from Trump’s Tariff Policies
The decline is not limited to the cryptocurrency market alone; global markets are also experiencing sharp downturns. Experts emphasize that the trigger for the cryptocurrency drop originates from global market conditions. The primary reason cited for this decline is the new tariff policies announced by U.S. President Donald Trump on April 2, which have led to increased economic uncertainty worldwide. Trump’s policies are described as an “economic nuclear war.”
In the last week alone, U.S. stock markets have fallen by 9.84%, European markets by 9.88%, Chinese markets by 7.10%, Japanese markets by 13.25%, Indian markets by 6.67%, South African markets by 8.70%, and Australian markets by 6.86%. In some regions, single-day declines have exceeded 9%.
Renowned investor Bill Ackman has warned that these policies could trigger a chain of economic crises, urging Trump to take a “timeout.” In response to these developments, investors are seeking safer havens globally, with continued exits from cryptocurrencies, considered risky assets, and a shift towards gold.
