President Donald Trump's announcement of 100% tariffs on Chinese imports sparked the largest cryptocurrency liquidation in history, wiping out $19 billion in leveraged positions. Bitcoin plunged to $104,000, while Ethereum and Solana saw drops of over 14% and 20%, respectively. The sell-off rippled through global markets, with major US stock indices recording their steepest declines in months.
On October 10, 2025, President Donald Trump escalated US-China trade tensions by announcing on Truth Social an additional 100% tariff on all Chinese imports, effective November 1, in response to China's export controls on rare earth minerals. Trump stated, 'Based on the fact that China has taken this unprecedented position... the United States of America will impose a tariff of 100% on China, over and above any tariff that they are currently paying.' He described China's actions as 'extremely hostile' and canceled a planned meeting with President Xi Jinping at the Asia-Pacific Economic Cooperation summit.
The announcement triggered immediate market turmoil. According to CoinGlass data, cryptocurrency liquidations reached $19 billion in the past 24 hours, the largest event in crypto history, affecting 1.6 million traders. Of this, $5 billion involved Bitcoin, $4 billion Ethereum, and $2 billion Solana. Bitcoin fell from $124,000 to a low of $104,000 before recovering to around $112,000. Ethereum dropped 14.2% to $3,742.88 from $4,365.63, and Solana plunged nearly 20% to $178.72.
Broader markets also suffered: the S&P 500 declined 2.71%, the Dow Jones fell 878 points, and the Nasdaq slid 3.58%, marking the worst single-day drops since April. CoinGlass noted that $16.8 billion of liquidations were on the long side, with Hyperliquid exchange seeing $10.3 billion in activity. Speculation arose over a trader who reportedly made $88 million shorting Bitcoin 30 minutes before the announcement, though no evidence of insider trading was confirmed.
Felix Jauvin, host of the Forward Guidance podcast, described it as 'one of the messiest liquidation events that I’ve seen in a long time,' comparing it to May 2021. Despite Trump's pro-crypto policies, including an executive order for digital assets in 401(k) plans, the event highlighted crypto's vulnerability to geopolitical shocks. Markets partially recovered by Saturday, but volatility persists amid ongoing trade talks.