Hours after Wall Street crash wiped out over $1.5 trillion from the market, the global cryptocurrency market went into freefall late Friday. The drop followed US President Donald Trump’s announcement to impose a 100% tariff on all imports from China. Trump’s tweet, posted hours earlier, sparked fears of a new trade war between the countries, which had previously disrupted the market as well. The move led to one of the largest market crashes in crypto history, wiping out billions in leveraged positions and forcing traders to rush to limit their losses.
Global Crypto market plunges: $19 billion wiped out
According to data from CoinGlass, around $19 billion in crypto positions were liquidated by Friday afternoon, with Bitcoin, Ethereum, and Solana among the biggest losers, CNN reported. This followed a $7 billion wipeout within just one hour of Trump’s announcement. Analysts said this marks the “largest liquidation event in crypto history.” The market collapse comes as U.S. stock markets also tumbled, with both the Nasdaq and S&P 500 posting their steepest six-month declines.
Brian Strugats, head trader at Multicoin Capital, told Bloomberg that total market liquidations could exceed $30 billion once smaller exchanges and DeFi platforms are accounted for. “The fear contagion spread quickly, investors were overleveraged, and when the first domino fell, it triggered a chain reaction,” he said.
Bitcoin, Ethereum, and Solana take the hardest hits
On Friday’s closing, bitcoin dropped nearly 10% in five days. It briefly dipped to around $103,000 before recovering slightly to trade near $111,600. Ethereum fell 14% to $3,742.88, while Solana dropped almost 20%, landing at $178.72. Among major tokens, Binance Coin dropped 6.6%, XRP plunged more than 22%, while Tether was steady around $1. Bitcoin’s market cap dropped to $2.22 trillion, while Ethereum’s fell to $456 billion. Trading volumes for both spiked over 140%.
Data from CoinMarketCap showed the overall crypto market cap dropping from $4.30 trillion to $3.74 trillion in just 24 hours, wiping out nearly $560 billion. At the same time, trading volumes jumped past $490 billion, showing heightened panic and mass liquidations.
The market disruption began after Trump posted on Truth Social, revealing plans to introduce a 100% tariff on all “critical software” and goods from China. He said the tariffs would take effect on November 1, 2025, if China does not comply with the demands. “China has taken an extraordinarily aggressive position on trade,” Trump wrote, referring to Beijing’s move to tighten export controls on rare earth minerals crucial to the global tech and EV industries. “Based on this unprecedented position, the U.S. will impose a 100% tariff on China and introduce export controls on all critical software.”
The announcement has rattled financial markets, which are already uneasy over inflation and interest rate uncertainty. Despite the carnage, some market analysts believe the sell-off could be temporary.
Edul Patel, CEO of crypto investment firm Mudrex, said the correction might open doors for patient investors. “The crypto market is reacting strongly to Trump’s announcement,” Patel said. “But these dips often create buying opportunities. Historically, October corrections like those between 2017 and 2020 have been followed by relief rallies of up to 20%.”
Since taking office this year, Trump’s public attitude toward digital assets has dramatically changed. From calling Bitcoin “based on thin air” to openly courting crypto supporters at conventions and even launching his own meme coin. His executive order allowing crypto in 401(k) retirement plans earlier this year took Bitcoin to a record high of $124,000. But his latest tariff threat has temporarily reversed that confidence.
