Trump's Tariff Announcement Triggers Crypto Market Liquidation

Donald Trump's announcement about a 100% tariff on Chinese goods and new export controls triggered a massive $19 billion liquidation in the crypto market. This move has caused significant decline in Bitcoin and altcoin prices, with historic volatility reported.

The actions were initiated by Donald Trump via his platform, Truth Social. Over 1.6 million traders experienced forced closures in less than 24 hours. Market analytics from CoinGlass highlighted this as the largest event of its kind.

The impact of Trump's announcement was immediate, causing Bitcoin's price to plummet from $117,000 to as low as $104,000–$108,000. The market saw losses of 10%–12% in a few hours, deeply affecting traders globally.

Traditional markets, including the S&P 500 and Nasdaq, fell by 2% and 2.7% respectively. Over 1.6 million trader accounts were liquidated, with speculation that this may trigger further financial instability in the market.

Ethereum, Dogecoin, and other altcoins experienced significant declines, with drops ranging from 15% to 40%. The decentralized finance markets also saw huge outflows as investors sought stable ground.

Historically, tariffs and economic sanctions have impacted crypto markets, but never at this magnitude. Analysts warn of potential regulatory scrutiny increasing as market participants assess ongoing risks. Longer-term repercussions remain uncertain but are likely profound.

Donald Trump, President of the United States – “Starting November 1st, 2025 … the United States of America will impose a tariff of 100% on China, over and above any tariff that they are currently paying…we will impose export controls on any and all critical software”