Crypto crash: $19 bn wiped out as Trump’s 100% China tariff sparks largest liquidation in history

Global cryptocurrency markets faced their sharpest crash of the year after Donald Trump announced a 100% tariff on China, triggering panic selling and record liquidations. More than $19 billion in crypto bets were wiped out, impacting over 1.6 million traders worldwide, according to Bloomberg. Within just one hour, over $7 billion in positions were liquidated, marking the largest mass sell-off in the history of digital assets.

A Bloomberg report, citing 24-hour data from Coinglass, revealed that the announcement led to the largest liquidation event ever recorded in the crypto market. Over $19 billion was erased as traders rushed to unwind leveraged positions, with 1.6 million investors facing forced liquidations. Of this, more than $7 billion worth of positions were wiped out in the first hour of trading on October 10 alone.

Brian Strugats, head trader at Multicoin Capital, estimated that the total market liquidation could exceed $30 billion, as fear of a broader contagion spread through exchanges and DeFi platforms.

Market carnage

Following the tariff shock, Bitcoin tumbled over 8% to $1,11,542.91 as of 12:42 pm on October 11, with its market cap falling to $2.22 trillion. However, trading volume spiked 145% to $183.88 billion as traders rushed to exit leveraged positions.

Ethereum, the second-largest cryptocurrency, dropped 12.7% to $3,778.31, with market cap at $456.05 billion. Trading volumes surged 148% to $112.75 billion, indicating heavy sell-side pressure.

According to CoinMarketCap, the overall crypto market capitalization plunged to $3.74 trillion from $4.30 trillion a day earlier — erasing nearly $560 billion in value within 24 hours. Total trading volumes during the crash crossed $490.23 billion, underscoring the scale of panic in the market.

Among major cryptocurrencies:

Bitcoin dominance: 59.8%

Ethereum dominance: 12.2%

Other tokens: 27.9% combined share

Altcoins mirrored the rout — Binance Coin fell 6.6%, XRP nosedived over 22%, while Tether remained steady near $1 as investors sought stability.

Correction, not a collapse

Despite the dramatic crash, Edul Patel, CEO of Mudrex, said the decline could be an opportunity for patient investors: “The crypto market is reacting strongly to Trump’s announcement of a 100% tariff on China, with a total market cap standing at $3.74 trillion. Bitcoin briefly tested $102,000 levels before recovering to the $113,000 range. Historically, October corrections (as seen between 2017 and 2020) have often been followed by relief rallies of up to 21%. Despite the short-term selling pressure, overall sentiment remains bullish. With gold trading in an overbought territory, potential capital rotation is expected, driving renewed momentum in crypto."

He added" "Additionally, the market is anticipating approval of dozens of spot altcoin ETFs in the US, opening doors for fresh capital to enter the markets. For investors, this phase creates an attractive entry opportunity. These declines could be used to gradually build long-term positions, especially in fundamentally strong assets like Bitcoin and Ethereum, before the next leg of the bull cycle begins.”

Patel’s view reflects a cautious optimism shared by several market participants who see this correction as a short-term panic, rather than the start of a prolonged bear phase.

Trump’s trigger

In a post on Truth Social, Donald Trump announced his plan to impose a 100% tariff on all “critical software” and goods from China, effective November 1, 2025.
He said the decision came after China issued an “extraordinarily aggressive” trade statement, vowing to impose sweeping export controls on rare earth minerals and industrial materials essential for global tech and EV production.

Trump wrote: “China has taken an extraordinarily aggressive position on trade, stating they will impose large-scale export controls on virtually every product they make. Based on this unprecedented position, the U.S. will impose a 100% tariff on China, over and above current tariffs, and introduce export controls on all critical software.”

The announcement shocked markets already reeling from inflation and interest rate uncertainty, reigniting fears of a new global trade war.