Crypto market declines as $150 million long liquidations follow Donald Trump, Xi meeting

• The cryptocurrency market records $150 million in long liquidations within an hour.
• Donald Trump’s meeting with Xi Jinping in South Korea led to a reduction in trade barriers. 
• Bitcoin, Ethereum, and XRP are down by more than 3% over the last 24 hours. 

The cryptocurrency market fails to rally amid US President Donald Trump’s discussion with Chinese President Xi Jinping in South Korea on Thursday, regarding trade barriers. Despite the largely positive meetup, long liquidations in the crypto market crossed $150 million within an hour, with Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) losing over 3% in the last 24 hours. 

Crypto market falls despite Trump, Xi smoothing out rough corners

US President Donald Trump and Chinese President Xi Jinping concluded the high-stakes trade meeting on an optimistic note in South Korea on Thursday, as previously reported by FXStreet. The key decisions made public from the meeting are that China will resume rare-earth exports with a one-year contract, purchase US soybeans, and discuss chips with NVIDIA, while the US has reduced tariffs to 47% from 57% and has fentanyl tariffs. 

The world’s two largest economies are smoothing rough corners, which could stabilize the global financial markets. However, the cryptocurrency market extends losses following hawkish remarks from Fed Chair Jerome Powell: "A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it," made after reducing the Federal interest rates by 25 basis points to 3.75%-4%. The Fed Chair suggested that the lack of clarity in financial data, due to the US government shutdown entering its fourth week, could dissuade the agency from further rate cuts.

CoinGlass data shows that $812.03 million in positions were liquidated in the last 24 hours, with $611.48 million in long liquidations and $200.55 million in short liquidations. 

More recently, the total liquidations have reached $223.76 million in the last hour after the Trump-Xi meeting, with long liquidations of $157.39 million outpacing short liquidations of $66.37 million. 

Crypto market liquidations data. Source: CoinGlass

The total cryptocurrency market capitalization stands at $3.75 trillion, down by nearly 3% over the last 24 hours by press time on Thursday. Meanwhile, Bitcoin, Ethereum, and XRP have lost over 3% in the previous 24 hours, trading below $110,000, $3,900, and $2.55, respectively.