Crypto Market Crash 2025: Trump’s 100% Tariff on China Triggers $19 Billion Liquidation- Bitcoin, Ethereum Hit Hard

Crypto Market Crash 2025: The global cryptocurrency market was rocked overnight as more than $19 billion in leveraged positions were liquidated, following President Donald Trump’s surprise announcement of a sweeping 100% tariff on all imports from China. The move set off alarm bells on Wall Street, which had already suffered a $1.5 trillion wipeout earlier in the day—and sent shockwaves through the digital asset sector, resulting in the single-largest liquidation event in crypto history.

Market Panic as Tariffs Announced

Late Friday, President Trump revealed his administration’s intention to impose 100% tariffs on Chinese goods and new export controls on critical software, effective November 1, 2025, unless China reverses course on recent export restrictions. The U.S. leader cited growing tensions and Beijing’s clampdown on rare earth exports as the chief catalysts. The announcement immediately sparked fears of a renewed trade war, rattling global risk sentiment and leaving investors scrambling to react.

$19 Billion Liquidated in Hours—Bitcoin and Ethereum Lead Losses

According to data from CoinGlass and other analytics trackers, the fallout was immediate and severe: within 24 hours, approximately $19 billion in crypto positions were forcibly liquidated as heavily-leveraged traders rushed to cut losses. Bitcoin, Ethereum, and Solana were among the hardest hit, with Bitcoin tumbling from recent all-time highs above $125,000 to briefly touch $102,000 before recovering to trade near $113,000. Ethereum plunged more than 12% to around $3,770, while Solana collapsed nearly 20% to under $180.

Ripple (XRP) saw a drop of more than 22%, Binance Coin lost 6.6%, but stablecoins like Tether held roughly steady as many investors fled to perceived safety.

A Chain Reaction of Losses

Over 1.6 million traders saw positions forcibly closed, most of them sitting on leveraged “long” bets across the major exchanges. Trading volumes spiked 140%–150% as the panic set in. More than $7 billion was wiped out within just the first hour after Trump’s tariff threat, setting off automatic sell orders and cascading losses across the market. Some traders and analysts estimated total global crypto liquidations could surpass $30 billion once losses on smaller DeFi platforms and exchanges are tallied.

Crypto Market Cap Nosedives by $560 Billion

CoinMarketCap data showed the overall crypto market capitalization plummeting from $4.3 trillion to $3.74 trillion in less than a day, erasing nearly $560 billion in value. Meanwhile, trading volume soared past $490 billion, capturing the scale of the panic-driven mass exit.

Expert Reaction: Crash or Buying Opportunity?

Despite the bloodbath, some market experts say the dramatic dip could prove to be a temporary correction—possibly creating an entry point for patient investors. Historically, October has seen similar shakeouts followed by relief rallies in the following weeks. “The crypto market is reacting strongly to Trump’s announcement,” noted Edul Patel, CEO of Mudrex. “But these dips often create buying opportunities. Historically, October corrections have been followed by rallies of up to 20%.”

Why Did This Trigger Such a Crisis?

The dramatic market reaction wasn’t just about Trump’s tariffs. China’s own new export restrictions on rare earth elements—vital for global tech and electric vehicle industries—had already been alarming markets. Trump’s response amplified fears of a prolonged trade war, global supply chain disruptions, and a renewed “flight to safety” across all risk assets, from stocks to cryptocurrencies.

What’s Next for Crypto?

With President Trump and China exchanging threats ahead of the November 1 deadline, investors should brace for continued volatility. The prospect of another prolonged U.S.-China trade war has left both crypto and equity markets on edge. Many are watching closely for any sign of a policy reversal—or a second wave of panic selling as the tariff date approaches.

For now, the 2025 crypto crash stands as a sobering reminder: market sentiment is as vulnerable to global politics and trade tensions as it is to fundamentals—especially with so much capital tied up in high-risk leveraged bets.

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