- •Main event, leadership changes, market impact, financial shifts, or expert insights.
- •Tariff announcement causes unprecedented market reaction.
- •BTC, ETH, USDe experience significant liquidations.
The cryptocurrency market faced an unprecedented $19 billion liquidation due to a combination of macroeconomic shocks, such as Trump’s tariff announcements, and cascading margin calls on major assets like BTC, ETH, and USDe. This event surpassed past liquidation records.
Lede: In an unprecedented event, the cryptocurrency market saw a total liquidation exceeding $19 billion within a 24‑hour period, impacting Bitcoin, Ethereum, and USDe, linked to a U.S. tariff announcement.
Nut Graph: The liquidations, primarily affecting long positions, highlight volatile reactions triggered by Donald Trump’s announcement of new U.S. tariffs on China, influencing crypto market behaviours.
Total Network Liquidation
The total network liquidation, driven by macroeconomic shocks, affected major cryptocurrencies and related DeFi protocols. Regulatory comments were absent, but whale activity on large exchanges contributed significantly to the market panic. On‑chain data showed over $19 billion liquidated, largely from Bitcoin, Ethereum, and DeFi derivatives following the tariff news. This event marks the largest liquidation in crypto history, drawing comparisons to previous crashes.
"The United States will impose a 100% tariff on all imports from China starting November 1. No meeting is necessary." – Donald Trump, President, United States
Asset Value Impact
Observers reported rapid asset value loss, with Bitcoin and Ethereum experiencing billions in liquidation. DeFi protocols tied to USDe suffered severe TVL drops, and stablecoins experienced depegs, leading to further financial repercussions. The economic impact extended to exchanges and trading platforms, with crypto leaders and developers prioritizing crisis management and solutions. Historical data underscores the scale of this event, with comparisons indicating an unprecedented impact on margin calls and market liquidity dynamics.
Efforts to mitigate the impact and rebuild confidence are underway, with major projects enacting technical adjustments to improve resilience and recover from the financial losses incurred. Data suggests a reevaluation of governance and collateral strategies in light.