After Donald Trump imposed 100% tariffs on Chinese imports, global markets responded with a historic wave of crypto liquidations.
Global markets were rocked by new U.S. trade sanctions against China, resulting in a historic crash across the crypto space.
Over 1.6 Million Traders Liquidated in 24 Hours
Friday marked one of the most brutal days in crypto history. Within just 24 hours, over 1.6 million traders were liquidated, with total losses exceeding $19 billion, according to data from Coinglass. The trigger? Trump’s new 100% tariffs on Chinese imports, coupled with fresh export restrictions that sent shockwaves through global markets.
Bitcoin, which earlier in the week had reached a new all-time high above $125,000, dropped more than 12%, falling below $113,000. On some exchanges, it briefly dipped as low as $102,000 before recovering slightly.
Trump’s “Tariff Bomb” Shakes Markets
Trump’s announcement reignited the U.S.–China trade war, hitting all risk-on assets. Stocks, oil, and crypto saw sharp declines. The Nasdaq dropped 3.6%, while the S&P 500 and Dow Jones posted their biggest losses in months.
Crypto traders, many of whom use high leverage, were hit the hardest. As prices dropped, automatic liquidations cascaded across exchanges.
According to Coinglass, total liquidations hit $19.13 billion—but the real figure may be higher, with Binance alone reporting one liquidation per second at peak.
In just one hour on Friday, over $7 billion in positions were wiped out. The largest individual liquidation occurred on the decentralized exchange Hyperliquid, where an Ethereum position worth $203 million was obliterated. Overall crypto market cap dropped from $4.2 trillion to $3.8 trillion, while the Crypto Fear & Greed Index plummeted from “Greed” to “Fear.”
“Black Swan” for the Crypto Market
This was a ‘black swan’ event.
commented David Jong, CEO of Tread.fi, adding that many institutions “were not prepared for this level of volatility.”
High-leverage perpetual futures trading only worsened the collapse, triggering even more forced liquidations across major exchanges.
Vincent Liu, CIO at Kronos Research, noted the sell-off “started due to tariff fears between the U.S. and China, but was fueled by excessive institutional leverage.”
Meanwhile, Bryan Strugatz from Multicoin Capital warned that the market is now watching closely for possible contagion risk among firms.
Bitcoin’s Key Level to Watch
Analysts are eyeing $100,000 as the next key support level for BTC. A break below this level, according to Caroline Moran from Orbit Markets, “would signal the end of the current three-year bull cycle.”
Opportunity Amid Chaos?
Some, however, see opportunities in the correction. BitMEX co-founder Arthur Hayes hinted that the crash had created rare buying windows:
Shoutout to all the ‘stink bidders’. You won’t see these levels again anytime soon for many quality altcoins.
For now, the market is watching closely. After a day of multi-billion-dollar liquidations, can Bitcoin hold the line—or is this just the beginning of a deeper correction?
Frequently Asked Questions
Find answers to the most common questions below.
Trump’s surprise 100% tariffs on Chinese imports triggered global panic and historic crypto liquidations.
Over $19 billion was liquidated across crypto markets in 24 hours, with more than 1.6 million traders affected.
Analysts point to $100,000 as a crucial support. A break below it could signal the end of the current bull cycle.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
