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

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

On Monday, April 7th, global financial markets experienced a sharp sell-off following U.S. President Donald Trump's announcement of a  reciprocal tariff policy.   S&P 500 and Nasdaq futures each dropped more than 5%, the MSCI Asia-Pacific Index fell nearly 8%, Japan'sNikkei Index plunged over 8%, and Hong Kong’s Hang Seng Tech Index tumbled more than 13%. The crypto market was no exception.

According to data, the total cryptocurrency market capitalization declined  by over 8%, wiping out more than $200 billion and falling  to $2.45 trillion—a new low not seen since November 2024.

Crypto Market Total Market Cap Changes, Source: CoinMarketCap.

The market crash triggered a wave of liquidations. In the past 24 hours alone, over 320,000 were liquidated, with total losses amounting to $1 billion. Long positions  made up  86% of the liquidations, with Bitcoin (BTC) and Ethereum(ETH) being the most affected—an indication that even large-scale investors and institutions were not spared.

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.