Bitcoin News Today: Trump's Tariffs Trigger $19B Crypto Collapse, Exposing Overleveraged Market Wounds

Trump's 100% tariffs on Chinese imports triggered the largest cryptocurrency liquidation in history, wiping out $19 billion in leveraged positions and sending Bitcoin, Ethereum, and Solana into steep declines. The abrupt sell-off, driven by fears of a renewed U.S.-China trade war, exposed rampant overleveraging in crypto markets and rattled global financial assets, with the Nasdaq and S&P 500 posting their steepest declines in six months .

The tariffs, announced by President Donald Trump via Truth Social, were framed as retaliation for China's tightened export controls on rare earth minerals critical to tech and defense manufacturing. Within hours, Bitcoin plummeted over 10% to $103,000 before rebounding slightly, while Ethereum and Solana fell 14% and nearly 20%, respectively . Data from CoinGlass showed $18.28 billion in total liquidations by 3:47 p.m. ET, with Bitcoin alone accounting for $5.38 billion in losses. The collapse was exacerbated by leveraged long positions, which bore the brunt of the selloff, and cascading margin calls that spread panic across exchanges .

Analysts attributed the crisis to a perfect storm of geopolitical tensions and speculative excess. Brian Strugats, head trader at Multicoin Capital, noted that liquidations could exceed $30 billion when smaller exchanges and DeFi platforms are included, as "investors were overleveraged, and the first domino triggered a chain reaction" . The lack of standardized circuit breakers in U.S. spot crypto markets-unlike equities-allowed forced sales to spiral unchecked .

Despite the carnage, some market participants viewed the crash as a buying opportunity. Edul Patel, CEO of crypto firm Mudrex, cited historical precedents, arguing that October corrections often precede relief rallies of up to 20%. However, the damage was structural: $1.66 million traders were liquidated in 24 hours, and the crypto market cap fell 9% to $3.8 trillion .

The geopolitical flashpoint also reignited debates about Trump's crypto policies. While his executive order allowing crypto in 401(k)s earlier this year drove Bitcoin to a record $124,000, the tariff announcement reversed that momentum. Meanwhile, a mystery "whale" on Hyperliquid reportedly profited $190 million by shorting Bitcoin and Ethereum just before the crash, raising questions about insider knowledge .

With Trump hinting at potential tariff rollbacks if China softens its export stance by November 1, markets remain on edge. Analysts caution that even a temporary recovery may not erase the long-term scars of the liquidation event, which has reset the derivatives landscape and deepened volatility in an already fragile sector .

Source: [1] Trump's new 100% tariffs on China triggered a $19 billion crypto ... (https://www.cnn.com/2025/10/11/business/trump-tariffs-crypto-selloff)

[2] Crypto market hit by biggest liquidation in history: $19B wiped out ... (https://www.financialexpress.com/market/crypto-market-hit-by-biggest-liquidation-in-history-19b-wiped-out-after-trumps-china-tariffs-see-the-worst-hits-400746/)

[3] Crypto Markets Crash $10 Billion After Trump's 100% China Tariffs (https://www.finance-monthly.com/10-billion-crypto-meltdown-trumps-100-china-tariffs-trigger-historic-liquidations/)

[4] Trump's 100% China Tariff Triggers $20B Wipeout, ... (https://cryptonews.com/news/trumps-100-china-tariff-triggers-20b-wipeout-1-6m-crypto-traders-liquidated/)

[5] 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/)

[6] Biggest Crypto Liquidation Ever Sees $16B Longs Decimated (https://www.coindesk.com/markets/2025/10/10/usd16b-in-longs-liquidated-as-wall-street-sell-off-extends-btc-eth-broader-crypto-market-meltdown)