Crypto markets dump $300M of leveraged long positions as bitcoin price plunges

Over $300 million worth of leveraged derivatives positions were liquidated across centralized exchanges in the past four hours, according to CoinGlass data, as crypto prices plunged following the news.

A rapid selloff hit crypto markets early Friday, wiping out most of the recent gains and pushing BTC down toward the $110,000 level. The move sparked a series of leveraged derivatives positions on centralized exchanges, with over $300 million liquidated in the past four hours, according to CoinGlass data.

Almost all liquidations came from long positions, traders betting on higher prices, with BTC longs accounting for $107 million of the total. Ethereum’s ether longs followed closely at $90 million.

“Nice aggregate flush of long leverage and de-risk selling from spot,” well-followed crypto trader Skew noted in an X post early Friday. “All driven by headlines once again.”

The sell-off came after former U.S. President Donald Trump proposed a 50% tariff on imports from the European Union starting next month, along with a 25% tariff on iPhones manufactured outside the U.S., in an interview with the Wall Street Journal. The move sparked concerns of an escalating trade war, which in turn weighed on riskier assets such as crypto.

Earlier this week, Trump also said he plans to announce new restrictions on government employees investing in Chinese companies.

The U.S. imposed a 25% tariff on a wide range of Chinese goods in 2018 after Trump announced plans to increase tariffs on $50 billion worth of Chinese imports in response to what the administration called unfair trade practices by Beijing, including technology theft. China retaliated with tariffs on U.S. goods, announcing a 20% tariff on 60 billion yuan of U.S. goods.

Crypto trader names James Wynn, who recently gained attention opening a $1.1 billion BTC long bet with 40x leverage on the Hyperliquid exchange, also slipped underwater on the massive position. Currently, the trader is sitting on $7.5 million of unrealized losses, and the position could be liquidated if BTC slips to $102,000.

Interestingly, the long liquidations came amid a recent unusual tilt toward short positions in BTC derivatives despite record prices, CoinDesk reported on Thursday.