Share this article
Crypto Market Sees $300M Liquidations as Trump Tariff Threats Flush Late Bulls
The leverage flush happened as crypto prices quickly dropped on renewed trade war fears, with BTC slipping 3% from near record highs.
Updated May 23, 2025, 5:27 p.m. Published May 23, 2025, 1:53 p.m.
Make us preferred on Google
What to know:
- Over $300 million in leveraged crypto positions were liquidated after Trump's tariff threats, CoinGlass shows.
- Bitcoin and major altcoins fell 3% to 4% following the proposed tariffs.
- Hyperliquid trader "James Wynn," making news for opening a $1.1 billion BTC long bet, currently sitting on $7.5 million unrealized losses on the trading position.
Crypto traders betting on a steady bitcoin rally got a sharp reminder of headline risk from Donald Trump's latest tariff threats.
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.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Nearly all liquidations came from long positions—traders betting on higher prices. BTC longs accounted for $107 million of the total, while Ethereum's ether followed with close to $87 million. Other tokens, including Solana's SOL , dogecoin , and SUI saw liquidations ranging between $10 million and $18 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 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., reigniting fears of an escalating trade war.
As a result, BTC and major altcoins such as Ether , XRP , and Cardano fell 3% to 4%, while smaller-cap tokens like Uniswap and SUI dropped 5% to 7% over the past 24 hours.
Crypto trader named James Wynn, who gained attention recently 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, according to a screenshot shared on X.
Interestingly, the long liquidations came amid a recent unusual tilt toward short positions in BTC derivatives despite record prices, CoinDesk reported on Thursday.
Read more: Why Are Bitcoin Traders Aggressively Shorting as BTC Hits New Record High?
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus
Some investors have revived concerns that quantum computing could threaten bitcoin, but analysts and developers say recent price weakness reflects market structure.
What to know:
- Bitcoin’s recent price stagnation has sparked a renewed debate over quantum-computing risks, with investor Nic Carter arguing that quantum fears are already shaping market behavior.
- On-chain analysts and prominent investors counter that the slowdown is better explained by large holders taking profits and increased supply hitting the market around the $100,000 level.
- Most bitcoin developers still view quantum attacks as a distant, manageable threat, noting that proposed upgrades like BIP-360 provide a path to quantum-resistant security and are unlikely to explain short-term price moves.
Top Stories
