A sudden market crash on Friday caused some cryptocurrencies to drop by as much as 95% in under 24 hours. However, investment analysts at The Kobeissi Letter do not see this as a signal of a long-term bearish outlook or weakening fundamentals. The crash was attributed to factors such as excessive leverage and US President Trump’s announcement of 100% tariffs on China.

The Kobeissi Letter highlighted the market’s heavy long bias, with $16.7 billion in long positions liquidated compared to $2.5 billion in short positions, creating a ratio of nearly 7:1. The market crash on Friday triggered a $20 billion cascade of liquidations, forcing nearly 1.6 million traders out of their positions within 24 hours, surpassing previous crises.

Bitcoin investors and traders are advised to expect price volatility in the short term as the market processes the implications of Trump’s tariff announcement and the macroeconomic effects. Analysts caution that the $20 billion in crypto liquidations is just the beginning, with reported losses being only a fraction of the actual financial damage to the markets and participants.

Read more at CoinTelegraph: Market Crash Caused by Perfect Storm of Short-Term Factors: Analysts