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Today in cryptocurrency, digital asset traders’ “normal justification” behavior by attributing the market decline to Trump’s tariffs, Zcash bounces back to pre-crash levels, and Crypto.com CEO Kris Marszalek has urged authorities to investigate exchanges after $20 billion in liquidations.
Crypto traders attribute Trump’s tariffs in pursuit of ‘singular incident’: Santiment
Retail crypto traders quickly blamed Friday’s extensive crypto market drop on US President Donald Trump declaring a 100% tariff on China, as they often search for something to hold accountable during declines, according to Santiment.
Analysts, nonetheless, argue that the cause of the market decline is more profound than the tariffs alone.
“This is standard ‘justification’ behavior from retailers, who feel the need to identify a singular event as the cause for a catastrophic decline in crypto,” Santiment noted in a Saturday report.
“After the decline, the crowd immediately converged to find a common understanding of what the drop could be ascribed to,” Santiment mentioned, highlighting the surge in social media conversations about both the crypto market and US-China tariff issues.
Zcash regains pre-crash highs
The value of Zcash (ZEC) returned to pre-crash highs and reached a new peak of around $293 on Saturday, following a swift flash crash on Friday that resulted in $20 billion in crypto liquidations within 24 hours.
Zcash is trading at approximately $293 per coin at the time of this writing, after a drop of 45% on Friday; this price recovery distinguishes it from most of the altcoin market, which experienced significant losses continuing into Saturday.
Altcoins plummeted by as much as 95% of their value on Friday, following an announcement from US President Donald Trump regarding increased tariffs on China.
The crash marks the fastest and most extreme crypto liquidation event in the sector’s history and serves as a reminder of the dangers of leveraged trading.
Crypto.com CEO calls for investigation into exchanges after $20B liquidations
Crypto.com CEO Kris Marszalek has requested a regulatory inquiry into exchanges that faced the most significant losses after a record $20 billion in crypto liquidations occurred in the last 24 hours.
In a Saturday post on X, Marszalek urged regulators to “carry out a comprehensive review of the fairness of practices,” questioning whether trading platforms had experienced delays, mispriced assets, or failed to uphold appropriate anti-manipulation and compliance measures during the crash.
“Regulators should investigate the exchanges that had the most liquidations in the past 24 hours,” he stated. “Did any of them grind to a standstill, effectively preventing people from trading? Were all transactions priced accurately and aligned with indices?”
Data from CoinGlass indicates that Hyperliquid led all platforms in liquidations, reporting $10.31 billion in wiped-out positions. Bybit followed with $4.65 billion, and Binance with $2.41 billion. Other significant platforms like OKX, HTX, and Gate recorded smaller totals, at $1.21 billion, $362.5 million, and $264.5 million, respectively.
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