$19 Billion Wiped Out! Crypto Markets Crash After Trump’s 100% Tariffs Spark Record Sell-Off

Author: Dev Patel | EQMint | General News

New York, October 11, 2025 — In one of the most dramatic collapses in cryptocurrency history, the global crypto market saw more than $19 billion in leveraged positions wiped out within 24 hours, following former U.S. President Donald Trump’s announcement of new 100% tariffs on Chinese goods. The shock move triggered panic across global markets, sparking the largest liquidation event ever recorded in the crypto industry.

According to data compiled by Bloomberg and Coinglass, the sudden crash impacted more than 1.6 million traders, marking an unprecedented wave of forced liquidations across major exchanges. Analysts have described it as a “black swan event,” with fears that the ripple effects could extend beyond digital assets into equities and commodities.

The Biggest Liquidation in Crypto History

Data from Coinglass revealed that within 24 hours of Trump’s announcement, over $19 billion worth of leveraged positions were liquidated — with $7 billion erased in just one hour of trading on October 10.

Experts noted that the combination of high leverage, algorithmic trading, and panic selling created a perfect storm that sent prices plunging across the board.

Brian Strugats, head trader at Multicoin Capital, told Bloomberg that the true scale of the sell-off could exceed $30 billion once smaller exchanges and unreported losses are factored in.

“We’re witnessing a cascading effect of liquidations — many of which were automated. Institutions holding leveraged positions were hit hard,” Strugats said.
“This isn’t just a correction — it’s a complete market reset.”

Global Market Reaction and Contagion Fears

The new 100% tariffs on Chinese imports, announced by Donald Trump during a press conference late Wednesday, have shaken investor confidence worldwide. The move is part of Trump’s proposed economic policy to curb Chinese exports if re-elected, but markets reacted violently to the uncertainty.

Within hours, global equity markets slipped into the red. The Dow Jones Industrial Average fell 2.6%, while Asian and European indices opened sharply lower. However, the biggest casualty was the cryptocurrency market — known for its speculative leverage and sensitivity to macroeconomic shocks.

Analysts warn that the sell-off could spark a “market contagion” effect, with some crypto hedge funds and over-leveraged traders facing insolvency. Several exchanges have already reported temporary withdrawal delays and liquidity shortages, as automated margin calls accelerated losses.

“This is a black swan event of unprecedented magnitude,” said David Jeong, CEO of decentralized finance platform Tread.fi.
“Many institutions were not prepared for this level of volatility. The structure of perpetual futures — highly leveraged and algorithm-driven — meant even blue-chip crypto investors were caught in the liquidation wave.”

Bitcoin and Ethereum Lead the Slide

According to CoinMarketCap, the total cryptocurrency market capitalization plunged to $3.74 trillion, down from a record-high $4.30 trillion just a day earlier — a massive erosion of nearly $560 billion in market value overnight.

The flagship cryptocurrency Bitcoin (BTC) tumbled 8.05% in 24 hours, trading at $111,542.91 as of 12:42 pm IST on October 11. Its market capitalization dropped to $2.22 trillion, though trading volumes spiked 145% to $183.88 billion, signaling panic-driven activity.

Meanwhile, Ethereum (ETH), the world’s second-largest cryptocurrency, fared even worse, plunging 12.71% to $3,778.31. Its market cap slipped to $456 billion, with trading volumes surging 148% to $112.75 billion as traders rushed to close positions.

Other major cryptocurrencies including BNB, Solana, and XRP also witnessed double-digit losses, deepening the sell-off across the altcoin market.

Experts Warn of a Bear Market Turn

Market observers are now debating whether the latest crash marks the end of the ongoing bull cycle that began in 2023. Caroline Mauron, co-founder of Orbit Markets, warned that the next key support for Bitcoin lies near the $100,000 mark.

“If Bitcoin breaks below the $100,000 psychological level, it could signal the end of the three-year bull market,” Mauron said.
“This event is testing institutional faith in crypto as an asset class.”

The steep fall has reignited concerns about crypto’s reliance on leverage and speculative trading. Analysts pointed out that the liquidation crisis reflects excessive risk exposure among traders who were betting on Bitcoin to reach new all-time highs by the end of 2025.

“Leverage remains crypto’s Achilles’ heel,” said Nikhil Verma, a digital asset strategist at Horizon Markets. “Retail and institutional investors have been operating at dangerous leverage levels. When geopolitical shocks hit, the result is mass liquidation.”

Trump’s Tariff Shock and Market Panic

Trump’s proposed 100% tariff on all Chinese goods has rattled not only financial markets but also the broader global trade environment. The announcement comes amid escalating rhetoric around U.S.–China trade tensions and fears of a renewed trade war.

While Trump argued that the tariffs would “protect American industries,” investors interpreted the move as a major geopolitical risk that could disrupt supply chains and global demand.

The crypto market, already trading near euphoric highs, became an immediate casualty. The fear of a liquidity crunch and flight to safety drove investors to exit risky assets such as crypto and high-growth tech stocks.

Gold and U.S. Treasury yields, on the other hand, saw a minor uptick as traders sought safe havens.

What Comes Next for Crypto Investors

In the aftermath of the meltdown, major exchanges like Binance, Coinbase, and OKX have issued statements assuring users that systems remain stable and all trading is functioning normally. However, some users reported delays in withdrawals and temporary transaction freezes, particularly during peak liquidation hours.

Market experts say volatility is likely to persist for several days as leveraged positions unwind and traders reassess their exposure.

“The crypto market needs time to reset,” said Jeong of Tread.fi. “If macro conditions worsen — particularly with trade tensions and inflation concerns — we could see Bitcoin retest $95,000 levels in the short term.”

Meanwhile, long-term investors are being urged to stay cautious and avoid speculative trades until markets stabilize. Analysts also believe this crash could prompt regulators to re-examine leverage limits and risk management policies on crypto exchanges.

Conclusion: A Reality Check for the Digital Asset Boom

The record-breaking $19 billion liquidation marks a sobering moment for a market that had grown complacent amid years of rallying prices and institutional inflows. While many see this as a short-term correction, others fear it may signal a broader structural reset for the digital asset industry.

As the dust settles, traders and investors alike are left grappling with a difficult question — is this the beginning of a new bear cycle, or just another extreme moment in crypto’s famously volatile history?

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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.