In just 24 hours, over $19B in leveraged positions were wiped out — the largest single-day liquidation in crypto history.
📉 $6.93B liquidated in 40 minutes ⚡ $3.21B erased in ONE minute 🔻 BTC -14.5% | ETH -12.2% | SOL -40% 💸 ~$350B market cap vanished 👥 1.6M+ accounts liquidated
This wasn’t another FTX. It was a mechanical leverage unwind triggered by a macro shock — Trump’s 100% China tariff announcement — amplified by record leverage.
4 months later: • Liquidity remains thin • Open interest below highs • Memecoins fell from $80B → $47B • Debate continues over USDe’s role
The industry still doesn’t agree on what truly broke the system.
Q4 GDP just printed 1.4% — far below the 3% expectation.
Cooling consumer spending, high borrowing costs, and the late-2025 government shutdown are clearly taking a toll. Add in a widening trade deficit, and the slowdown looks broader than many anticipated.
The key question now:
👉 Does this accelerate rate cuts? 👉 Or does inflation risk keep the Fed cautious?
Markets are officially in “policy pivot watch” mode.
Liquidity expectations are about to drive everything — equities, bonds, and yes… crypto.
The U.S. Federal Reserve is reportedly injecting ~$16 BILLION into the banking system via overnight repo operations this week.
This comes as liquidity pressures quietly build in short-term funding markets — even after the Fed officially ended Quantitative Tightening in late 2025.
💰 What does this mean?
• More short-term liquidity for banks • Stabilization of funding markets • Potential risk-on sentiment boost • Historically bullish for assets like crypto & equities
Liquidity drives markets. And when the Fed turns the taps on — even temporarily — smart money pays attention.
Is this the start of a bigger liquidity wave in 2026? 👀