Trump’s Tariff Announcement Triggers $19 Billion Crypto Liquidation
On October 10, U.S. President Donald Trump announced a 100% tariff on Chinese imports. He also promised strict export controls on software. Trump accused China of “hostile actions” over rare-earth mineral exports. He said there was “no reason” to meet Chinese President Xi Jinping at the APEC summit. This announcement caused a sharp market sell-off worldwide.
Equities, oil, and cryptocurrencies all fell. Investors moved quickly into gold and U.S. Treasuries for safety. The crypto market saw one of its worst single-day crashes ever.
Record $19.38 Billion Liquidated in Crypto Market
Data from Coinglass shows $19.38 billion in crypto positions were liquidated within 24 hours. Long positions accounted for $16.87 billion, while shorts made up $2.51 billion. Nearly $7 billion was wiped out in the first hour after Trump’s post.
The largest single liquidation was a $203.36 million ETH-USDT position on Hyperliquid exchange. Analysts say the crash was driven by excessive leverage and bullish market momentum. Ravi Doshi, co-head of markets at FalconX, said, “The tariff news was the ignition and lit the fuse under a market full of leveraged bets.”
Bitcoin and Ethereum Lead the Decline
- Bitcoin (BTC): BTC fell over 12%, dropping from above $126,000 to nearly $102,000. About $5.39 billion in BTC positions were liquidated, including $4.69 billion longs and $703.79 million shorts. By midday October 11, BTC traded near $111,500 with a market cap of $2.22 trillion.
- Ethereum (ETH): ETH lost 12–13% of its value, falling below $4,000 to $3,808. Total liquidations reached $4.45 billion, with $3.86 billion longs and $583.89 million shorts.
Altcoins Also Suffer Heavy Losses
- Solana (SOL): SOL dropped nearly 18% to $182.5. Liquidations totaled $2.02 billion, mostly from long positions.
- XRP: XRP fell about 13% to $2.44. Liquidations hit $709.98 million, mainly longs. XRP faced additional pressure from SEC delays on related ETFs.
- Dogecoin (DOGE): DOGE plunged roughly 24% to $0.19. Liquidations were $475.31 million, mostly longs. Retail traders were heavily affected as trading volume surged over 300%.
Market Impact and Outlook
The total crypto market cap dropped over 9.2%, from $4.30 trillion to $3.76 trillion. Bitcoin’s dominance rose to 59.8%, while Ethereum held 12.2%. The Crypto Fear & Greed Index fell sharply from 64 to 27, signaling strong market fear.
Many experts view this crash as a result of macroeconomic events combined with high leverage. Brian Strugats, head trader at Multicoin Capital, called the sell-off a “flush-out” that could lead to healthier future rallies. Institutional investments, like BlackRock’s recent ETF moves, may support recovery if conditions improve.
The new tariffs will take effect on November 1. Market participants now watch for China’s response and further U.S. policy developments.
