Bitcoin News Today: Trump's Tariff Shockwave Sparks $19B Crypto Black Swan as Leverage Collapses

The cryptocurrency market experienced its largest single-day liquidation event in history as U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports triggered a global sell-off. According to Coinglass data, over $19 billion in leveraged positions were wiped out within 24 hours, impacting 1.6 million traders. Bitcoin, Ethereum, and other major cryptocurrencies plummeted as risk-off sentiment dominated markets, with the total crypto market capitalization dropping nearly $500 billion in under an hour.

Bitcoin led the carnage, with $5.36 billion in long positions liquidated as prices fell over 12% to briefly dip below $113,000. Ethereum followed closely, losing $3.85 billion in longs amid a 12.7% decline to $3,778. Altcoins were hit even harder: Solana slumped 16%, XRP dropped 14%, and meme coins like Dogecoin and Pepe fell more than 20%. The largest single liquidation occurred on Hyperliquid, where a $203 million Ethereum trade was erased.

The selloff was fueled by Trump's response to China's export controls on rare earth minerals, which he described as "extraordinarily aggressive." The president also announced export restrictions on "critical software," escalating trade tensions and sparking fears of a renewed global trade war. The S&P 500 dropped 2.7%, oil prices hit a three-month low, and gold surged as investors flocked to safe-haven assets.

Analysts highlighted the mechanical nature of the crash, driven by leveraged positions and perpetual futures funding rates. "This was a black swan event," said David Jeong of Tread.fi, noting that institutions had not anticipated such volatility. Vincent Liu of Kronos Research added that the sell-off was "sparked by U.S.-China tariff fears but fueled by institutional over-leverage." Brian Strugats of Multicoin Capital warned of potential contagion risks across exchanges and DeFi platforms.

The market's sensitivity to macroeconomic shocks was underscored by the rapid unwinding of speculative bets. Ethereum's dominance fell to 12.2% as altcoins, particularly meme coins, faced extreme volatility. Chinese-themed tokens tumbled 39%, while AI-themed coins dropped nearly 30%.

Looking ahead, experts remain divided. Some view the crash as a correction rather than the start of a prolonged bear market. Edul Patel of Mudrex noted historical precedents for October corrections followed by relief rallies and pointed to anticipated U.S. spot altcoin ETF approvals as potential catalysts for recovery. Others, like Peter Schiff, warned of further declines if key support levels are breached, particularly for Ethereum, which now trades near $3,900.

The Trump administration's move has also reignited debates about crypto's role in global finance. While Bitcoin's correlation with equities remains strong, its beta to the dollar and commodities suggests it will continue to act as a barometer for macroeconomic stress. As markets digest the policy shift, the focus will remain on whether the U.S. and China can de-escalate tensions-or if the trade war will deepen.

[1] Massive liquidations hit Bitcoin, XRP after Trump's 100% China tariff (https://www.thestreet.com/crypto/business/crypto-bitcoin-xrp-trump-100-china-tariff)

[2] Crypto Plunges 10%, Liquidations Hit 19B On Trump's China Tariffs (https://insidebitcoins.com/news/crypto-market-plunges-10-liquidations-hit-19b-as-donald-trump-announces-100-tariffs-on-china)

[3] Crypto Liquidation hits $19B as Trump's China Tariff ... - Coinpedia (https://coinpedia.org/news/crypto-liquidation-hits-19b-as-trumps-china-tariff-triggers-market-crash/)

[4] Crypto Crash: Bitcoin (BTC) Down 10%, ETH, XRP, SOL in Freefall ... (https://www.coindesk.com/markets/2025/10/10/bitcoin-crashes-below-usd110k-cryptos-in-freefall-on-further-trump-tariff-on-china)

[5] Crypto market hit the largest liquidation in history, $19 billion ... (https://economictimes.indiatimes.com/news/international/us/crypto-market-hit-the-largest-liquidation-in-history-19-billion-liquidated-after-trumps-new-tariffs-shock/articleshow/124472571.cms)

[6] 100% Tariff on China: Market Crash, Crypto Liquidated (https://www.coingabbar.com/en/crypto-currency-news/100-percent-tariff-china-crypto-liquidation)

[7] Crypto Plunges After Trump Confirms 100 Percent China Tariff (https://blog.bitunix.com/en/trump-china-tariff-crypto-market-crash/)

[8] 'Trump Surprise' Triggers Huge Crypto 'Flash Crash' As ... - Forbes (https://www.forbes.com/sites/digital-assets/2025/10/11/trump-surprise-triggers-huge-crypto-flash-crash-as-traders-brace-for-bitcoin-ethereum-xrp-bnb-and-solana-price-wipeout/)

[9] Trump's China Tariff Rocks Crypto Market: Bitcoin Falls Hard, ... (https://www.timesnownews.com/business-economy/markets/trumps-china-tariff-rocks-crypto-market-bitcoin-falls-hard-ethereum-drops-double-digits-article-152981140)

[10] Why Bitcoin Price, Ethereum, XRP, Solana, Other Altcoins Are ... (https://www.thecoinrepublic.com/2025/10/10/why-bitcoin-price-ethereum-xrp-solana-other-altcoins-are-suddenly-falling/)

[11] Crypto Crash: $19 bn wiped out as Trump's 100% China tariff ... (https://www.businesstoday.in/personal-finance/investment/story/crypto-crash-19-bn-wiped-out-as-trumps-100-china-tariff-sparks-largest-liquidation-in-history-497823-2025-10-11)

[12] Trump's China Tariff Triggers Crypto Crash, But For How Long? (https://beincrypto.com/trump-china-traiff-threat-crypto-market-cr/)

[13] Clometrix | US-China Trade Tensions' Impact on Altcoin Volatility ... (https://www.clometrix.com/news/macroeconomics-crypto/us-china-trade-tensions-impact-on-altcoin-volatility-patterns-from-2025-tariff-escalations)