Bitcoin Corrects Into Panic Zone: Disclaimer Is a Real Risk for Traders

Bitcoin has entered a highly negative market sentiment after experiencing a sharp correction of over $3,000 in a short period, with the price dropping to around $67.87K at the time of writing. This decline reflects massive selling pressure across the crypto market, triggering panic responses among market participants.

Trump Tariff Policies Trigger Global Sell-Off

The increase in global tariffs announced by Donald Trump has become the main trigger for this market volatility. The U.S. President announced raising tariffs from 10% to 15%, stating that this policy targets countries believed to have “exploited” the United States for years. The announcement also indicated that additional tariff measures will be implemented in the coming months, creating global economic uncertainty that directly impacts risk assets like cryptocurrencies.

Fear Index Hits Historic Lows

Market sentiment has plummeted sharply, with the Crypto Fear and Greed Index reaching its lowest level in history at 5 out of 100. This figure indicates extreme market panic, where most participants feel very fearful and hesitant about the market’s direction. Such a low reading is rare and usually signals massive sell-offs that are not yet balanced by buying.

Over 136,000 Traders Forced Liquidated

A wave of panic has resulted in significant losses for thousands of leveraged traders. In the past 24 hours, more than 136,000 trader positions have been forcibly liquidated, totaling losses of $458 million. It’s important to note that about 92% of all these liquidations involved long leveraged positions, meaning traders betting on Bitcoin’s rise with borrowed funds had to close their positions at much lower prices.

Historical Comparison and Current Market Context

To provide perspective, Bitcoin is currently trading about 48% below its all-time high of $126.08K reached in 2024. Additionally, the current price is 5.5% below the previous cycle peak of $69,000 set in 2021. This comparison highlights the significant volatility investors have faced over the past two years.

Disclaimer Is a Crucial Step: Understand Risks Before Acting

For traders and investors, disclaimers are warnings that must be taken seriously. The crypto market exhibits much higher volatility compared to traditional assets, and panic momentum like this can lead to substantial losses in a short period. Before making investment decisions, it is essential to fully understand these risks and ensure your trading strategy aligns with your personal risk tolerance.