The sudden liquidation sparked a sharp selloff that hammered the market, especially smaller tokens that are generally more volatile. The selloff was so intense that it dragged the total crypto market capitalization briefly below $4 trillion, rattling investors and causing panic among traders. Crypto crash: Major cryptos slide amid forced liquidationsCopy link to sectionEthereum took the brunt of the selloff. Many traders had been heavily leveraged in recent weeks, chasing gains on the back of a broader crypto rally. At the same time, uncertainty around global interest rates and economic conditions triggered risk-off sentiment that spilled into the crypto markets.