What to Know:
- •Crypto market loses $400 billion due to US-China trade conflict.
- •Bitcoin and Ethereum hit heavily.
- •Historical parallels drawn with 2020 crash.
A dramatic $400 billion crypto market crash occurred in October 2025 after former President Trump imposed 100% tariffs on Chinese imports, triggering significant sell‑offs.
The crash highlighted the vulnerability of the crypto market to geopolitical events and excess leverage, sparking institutional re‑evaluation and regulatory considerations.
In October 2025, the cryptocurrency market saw $400 billion wiped out following former President Trump's announcement of 100% tariffs on Chinese imports, leading to a rapid sell‑off.
The announcement tied global trade policy to cryptocurrency volatility, resulting in cascading liquidations as traders reacted swiftly to the geopolitical shift.
Market Plummets $400 Billion After Trump's Tariff News
The crypto crash of October 2025 triggered by President Trump's announcement of a 100% tariff on Chinese imports. The reaction was an immediate sell‑off, tightly linking global politics with crypto volatility.
Key players include whale and institutional traders who had short positions on BTC and ETH. Institutions like JPMorgan pursued structured strategies post‑crash to capitalize on AI‑blockchain integration.
Bitcoin, Ethereum Prices Dive Amidst Market Shrink
The crypto market cap shrunk by an estimated $400 billion. Notably, BTC prices fell to $102,000 on Binance, while ETH dropped to $3,500, causing significant market distress.
Financially, over $19 billion liquidated simultaneously, marking the largest crypto single‑day wipeout. Politically, tariffs and China's controls have heightened trade tensions affecting market sentiment.
Crash Echoes 2020 Deleveraging; Experts Predict Rebound
Analysts compare this event to the March 2020 COVID crash, highlighting similar deleveraging mechanics.
There remains speculation on whether a rapid recovery will ensue.
Historically, similar crashes have led to parabolic rises. Experts speculate that structured strategies and previous patterns suggest a market rebound could follow, echoing past recoveries.
"BTC and ETH crashed hard back then, alts dumped more than 70% in a single day. Everyone lost hope. But the market went parabolic afterward. BTC climbed from $3,800 to $69,000. ETH jumped from $90 to $4,800. History could repeat itself." — Ash Crypto, Analyst