After hinting at possible stability last week, the wider crypto market – led by Bitcoin (BTC) – will be on the defensive side in the coming days. In the past 24 hours, the crypto market recorded heavy losses, with total forced liquidations of $1 billion, whereby the majority were long traders.

As the Western financial markets gradually open on Monday, more losses are expected in the crypto market. Moreover, the wider Asian markets have set a bearish momentum, amid heightened fear of further capitulation.

Also Read : Crypto Crashing Today : Chinese Stock Market , Nasdaq , Hang Seng Index, Nifty 50 Plunge

Major Forces Behind Today’s Crypto Selloff

Trade War Fears

Bitcoin price led the wider altcoin market – led by Ethereum (ETH) and XRP – in a significant drop during the past 24 hours, largely because of the trade war fears. After China retaliated with reciprocal tariffs to the U.S. reciprocal tariffs, more nations, especially the European Union and Japan, are expected to announce similar measures this week.

Consequently, crypto investors have accelerated profit-taking, while some traders took huge losses. Moreover, technical analysis shows the crypto market is slated to drop further in the coming days.

Liquidation of Overleveraged Positions 

The crypto market recorded a forced liquidation of about $1.01 billion in the past 24 hours, whereby the long trades amounted to around $868 million. With over 323k traders impacted in the past 24 hours, including whale investors, the odds of a long squeeze increased, leading to further losses.

Bearish Technical Setup

The crypto market has been trapped in a bearish outlook since the second inauguration of U.S. President Donald Trump. Bitcoin price has already retested a macro reversal pattern, thus aiming for around $60k next.

Ethereum price has already closed below a weekly rising logarithmic trend established in late 2023. As a result, the bearish sentiment has the upper hand for Ether, amid low demand from institutional investors.

Meanwhile, XRP price slipped below the crucial support level above $1.9 in the past 24 hours to trade at about $1.77 at the time of this writing. As a result, more bearish sentiment for XRP will likely continue in the coming days.

Macroeconomic Concerns

The wider crypto market has been reacting to macroeconomic concerns, especially amid the ongoing global trade wars. As Coinpedia reported, the odds of a recession in the United States significantly increased, as economists predicted rising inflation.