Crypto Crash 2025: Trump’s 100% China tariff sparks panic as $19 billion in crypto bets vanish, Bitcoin dives 8%, and $560 billion wiped from global markets.
Crypto Crash 2025: Global cryptocurrency markets plunge as Donald Trump’s 100% tariff on China sparks panic selling, erasing $19 billion in leveraged bets and $560 billion in overall market value within 24 hours.
Crypto Crash 2025: Key Highlights
- Over $19 billion in leveraged crypto bets wiped out in 24 hours.
- 1.6 million traders liquidated — largest in crypto history.
- Bitcoin down 8% to $111,542, Ethereum down 12.7%.
- $560 billion in market value erased within a day.
- Trump’s 100% China tariff triggers global sell-off.
- Experts see it as a short-term correction, not a collapse.
Crypto Crash 2025: Global cryptocurrency markets witnessed their sharpest crash of the year after former U.S. President Donald Trump announced a 100% tariff on all Chinese goods, triggering widespread panic selling and record liquidations across exchanges.
According to a Bloomberg report citing Coinglass data, more than $19 billion worth of leveraged positions were wiped out in just 24 hours, impacting over 1.6 million traders worldwide. Within a single hour, over $7 billion in positions were liquidated — the largest mass sell-off in crypto history.
Must Read: Trump Net Worth Soars to $7.8 Billion in 2025 Amid Second Presidency and Crypto Boom
Crypto Crash 2025: Record Liquidations and Market Carnage
The Coinglass data revealed that the total wipeout could climb further as liquidations spread across decentralized finance (DeFi) platforms. Brian Strugats, head trader at Multicoin Capital, estimated that the total market liquidation could exceed $30 billion, warning of “broader contagion risks” across the crypto ecosystem.
Following the tariff shock, Bitcoin plunged 8% to $111,542.91 as of 12:42 p.m. on October 11, with its market capitalization dropping to $2.22 trillion. However, trading volumes surged 145% to $183.88 billion as traders rushed to exit leveraged positions.
Ethereum, the second-largest cryptocurrency, slumped 12.7% to $3,778.31, with its market cap sliding to $456.05 billion. Trading volume jumped 148% to $112.75 billion, indicating intense sell-side activity.
According to CoinMarketCap, the overall crypto market capitalization dropped from $4.30 trillion to $3.74 trillion in just one day — erasing nearly $560 billion in market value. Total trading volumes during the crash crossed $490.23 billion, underscoring the scale of panic.
Among major assets:
- Bitcoin dominance: 59.8%
- Ethereum dominance: 12.2%
- Other tokens: 27.9% combined share
Altcoins mirrored the bloodbath — Binance Coin (BNB) fell 6.6%, XRP nosedived 22%, while Tether (USDT) remained steady near $1, as investors sought refuge in stablecoins.
Crypto Crash 2025: Correction, Not a Collapse
Despite the turmoil, experts believe the correction may be temporary. Edul Patel, CEO of Mudrex, called the decline “a healthy correction in an overheated market.”
“The crypto market is reacting strongly to Trump’s 100% China tariff announcement,” Patel said. “Bitcoin briefly tested $102,000 levels before rebounding to $113,000. Historically, October corrections have often been followed by relief rallies of up to 21%. Despite short-term pressure, overall sentiment remains bullish.”
Patel added that the market is anticipating U.S. approval of multiple spot altcoin ETFs, which could bring fresh institutional inflows.
“These declines offer a chance for long-term investors to build positions in strong assets like Bitcoin and Ethereum before the next leg of the bull cycle,” he said.
Analysts point out that with gold trading in an overbought zone, potential capital rotation could revive crypto momentum in the coming weeks.
Crypto Crash 2025: Trump’s Trade Trigger
In a post on Truth Social, Donald Trump announced that the 100% tariff would apply to all “critical software and goods” from China, effective November 1, 2025.
Trump claimed the move was in response to Beijing’s “extraordinarily aggressive” new trade stance — which included threats to impose sweeping export controls on rare earth minerals and other materials essential for global tech and electric vehicle production.
“China has taken an extraordinarily aggressive position on trade,” Trump wrote. “Based on this, the U.S. will impose a 100% tariff on China and introduce export controls on all critical software.”
The surprise announcement rattled markets already struggling with inflation, interest rate uncertainty, and sluggish global growth, reigniting fears of a renewed trade war between the world’s two largest economies.