On October 10, 2025, Donald Trump announced a 100% tariff on Chinese imports, causing the cryptocurrency market to crash significantly worldwide.
Trump's tariffs led to extensive crypto losses and market volatility, highlighting the fragility of leveraged trading.
$19.2 Billion Wiped Out in Crypto Market Turmoil
Donald Trump's announcement of a 100% tariff on Chinese imports caused extensive crypto market disruptions. The sudden announcement made on Trump's Truth Social was cited as a response to restrictive Chinese exports. Institutional constraints were evident due to the market's thin liquidity and excessive leverage, exacerbating the situation.
Zaheer Ebtikar from Split Capital described the situation as “a structural failure of leverage.” Both CoinGlass and Hyperliquid confirmed substantial liquidation involving over 1.6 million traders. These actions contributed to the crash, with industry experts noting the scale of impact on connected exchanges.
Bitcoin, Ethereum, and Solana Face Double-Digit Losses
The $19.2 billion liquidation saw cryptocurrency market capitalizations decrease by $200 billion. Bitcoin prices plunged by over 10%, with simultaneous significant drops in Ethereum and Solana valuations. Trading platforms, including Binance, faced outages causing further market strain and liquidity issues. This aligns with CoinGlass's statement:
“This is the largest liquidation event in crypto history.”
The crisis reverberated across financial sectors, hinting at potential regulatory implications. Community debates mounted, emphasizing weak market structures. Stablecoin inflows surged as traders sought shelter, pointing towards persistent risk evasion tendencies.
Market Crash Evokes Deja Vu of Previous Crises
The event bears comparisons to both the March 2020 pandemic crash and the FTX collapse of 2022. Patterns of mass liquidations and abrupt cryptocurrency market shifts are recurrent during geopolitical or economic disruptions, per analysts.
Potential outcomes could see strengthened regulatory frameworks to monitor leverage and liquidity, given past trends. Market experts argue for enhanced algorithmic trading scrutiny in light of elevated market fragility.