Crypto Market Bloodbath: 320K Traders Liquidated as $200B Evaporates Amid Extreme Fear

TradingKey - The crypto market evaporated over $200 billion today, triggering extreme panic. Is a rebound imminent?

On Monday, April 7th, global financial markets experienced a sharp decline due to U.S. President Trump's reciprocal tariff policy. The S&P 500 and Nasdaq futures dropped over 5%, the MSCI Asia-Pacific Index fell nearly 8%, the Nikkei Index plunged over 8%, and the Hang Seng Tech Index in Hong Kong tumbled more than 13%. The crypto market was no exception.

According to data, the crypto market fell by over 8%, with its total market capitalization evaporating by more than $200 billion, dropping to $2.45 trillion—a new low since November 2024.

Crypto Market Total Market Cap Changes, Source: CoinMarketCap.

The market crash led to massive liquidations. Data shows that in the past 24 hours, over 320,000 users faced liquidations, amounting to $1 billion. Long positions accounted for 86% of the liquidations, with Bitcoin (BTC) and Ethereum(ETH) being the primary assets affected, indicating that whales and institutions are also suffering losses.

Crypto Market Liquidation Data, Source: CoinGlass.

Additionally, the Fear & Greed Index for the crypto market stands at 17 today, nearing the value recorded on March 11th this year. It indicates extreme panic, with limited room for further decline, suggesting that a rebound may occur at any moment.

Crypto Market Fear & Greed Index, Source: CoinMarketCap.