Matrixport: Trump's Tariff Threat Triggers Historic Crash in the Crypto Market

ChainCatcher news, Matrixport indicated in today's chart that Trump's threat to impose a 100% tariff on China triggered a historic crash in the crypto market, coinciding with a time of high market leverage and extreme optimism.

As prices fell, automatic liquidations on decentralized exchanges (DEX) began to trigger in a chain reaction. Due to insufficient liquidity and low trading volume, these liquidation orders were executed passively, further exacerbating the market sell-off. At one point, the funding rate for Ethereum plummeted to -39%, marking one of the most severe corrections in recent years, almost wiping out excessive leveraged positions in the market. During this decline, only a few traders benefited. As volatility gradually subsides, market signs indicate that new long positions are likely to be rebuilt. This historically significant "surrender-style sell-off" has completely reshaped the holding patterns of the entire crypto market.