Crypto Markets Sink as $300M in Longs Liquidated Ahead of April Tariff Uncertainty
Cryptocurrency markets were hit hard on Friday, with over $300 million in leveraged long positions wiped out as traders pulled back ahead of macroeconomic headwinds and looming U.S. policy changes.
Bitcoin (BTC) fell roughly 3% over the past 24 hours to around $82,000, while major altcoins like XRP, BNB, and SOL saw losses between 4% and 5%. The CoinDesk 20 Index, which tracks a basket of top digital assets, dropped 3.3%, erasing much of the week’s earlier momentum.
According to CoinGlass data, short positions worth nearly $39 million were also liquidated, highlighting extreme volatility across the board.
Market participants appear to be derisking ahead of April 2, when President Donald Trump’s reciprocal tariffs are set to take effect. The move coincided with hotter-than-expected core PCE inflation data released Friday morning, reinforcing stagflation fears.
Recent economic indicators added further pressure: consumer confidence slid again, and the future expectations index hit its lowest point in 12 years — typically a red flag for recession watchers.
As risk appetite deteriorates, investors have begun favoring safe-haven assets. Gold-backed tokens like PAXG and XAUT bucked the downtrend, rising 0.7% on the day and gaining over 18% year-to-date. In contrast, BTC is down 12.5% YTD, while the CD20 index has shed 28%.
With macro risks building and policy uncertainty ahead, market volatility may persist as investors reassess their crypto exposure going into Q2.
