The crypto market faced a sharp sell-off overnight as fears of a renewed trade conflict between the United States and the European Union shook global risk sentiment. Bitcoin and major altcoins have reversed recent gains, with traders reacting to new tax headlines and the possibility of increased economic retaliation on both sides of the Atlantic. Although crypto is often considered a separate market, this move also showed how quickly digital assets can behave as a high-beta risk trade when great uncertainty rises.
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According to analyst Darkfost, the impact of the shutdown was swift and furious. More than $800 million in positions were liquidated in a matter of hours, including about $768 million in long stops. The level of long closings suggests that sellers are set to move forward, but are caught short as prices move higher.
What stands out the most is where the damage happened. Darkfost noted that Hyperliquid recorded the largest share of forced liquidations, at $241 million, with Bybit following close behind at $220 million. The wave of liquidation appears to be related to the announcement of new tariffs against Europe, which has prompted an equally swift response from EU policymakers, dominating the broader narrative of a “trade war” across markets.
CME Opens the Door to New Revolutions
Darkfost cautions that the timing of this selloff is as important as the size of the sale. As soon as CME trading opened, Bitcoin saw a sharp move, suggesting that institutional flows and highly correlated positions played a direct role in the move. In past hedging episodes, the CME open has often acted as a catalyst for volatility, especially when markets are already weak, and profits have been lifted across the major markets.
That is why the next few hours are critical. The same type of movement can easily be repeated at the opening of the US markets, where liquidity conditions and subject sensitivity tend to increase the reaction. If sellers press again, the market could see another forced shutdown, especially in high-beta altcoins that remain vulnerable after the overnight shutdown.
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The message is clear: stay alert and avoid overexposure to become stronger while the larger base remains unstable. Suspensions can cause sharp jumps, but they can also quickly reset momentum if fear spreads to risky assets.
Darkfost adds that attention should remain on incoming political updates. The market now trades on a narrative, not just a chart. Other statements can come at any time, and as history has shown, Trump often brings the headlines to the markets in the middle of the weekend.
Bitcoin Holds Fragile Rebound As Crypto Tests Macro Nerves
Bitcoin is trading near $93,100 after a sharp rejection from the $96,000–$97,000 supply area. The chart shows BTC still struggling under key moving averages, with momentum held by the downward trendline in blue. This reinforces the idea that the latest observational effort was more of a replication than a pure regression.
Structurally, the price made a high decline after a violent decline from the $110,000 area. However, the rebound remains vulnerable as long as BTC remains stuck below resistance and fails to recapture the mid-$90,000s with certainty. Recent candles also highlight doubts, weeklies suggest strong selling.
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The red long-term moving average is rising near the low $90,000s, serving as a potential support area. If Bitcoin holds above that level, it keeps the recovery structure intact and prevents a deep reset to pockets of income.
This is important for the broader crypto market. When BTC remains range-bound below resistance, altcoins often struggle to support rallies and become more sensitive to liquidation-driven volatility. Appetite could return quickly, but it needs Bitcoin to break above resistance and hold. Until then, crypto remains in a weak stability phase, not a guaranteed bullish continuation.
Featured image from ChatGPT, chart from TradingView.com
