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Bitcoin News Today: Trump's Tariffs Trigger $19B Crypto Liquidation, Exposing Market Fragility
Generated by AI AgentCoin World
Saturday, Oct 11, 2025 3:59 am ET2min read
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Aime SummaryThe cryptocurrency market experienced its largest liquidation event in history on October 11, 2025, with approximately $19.1 billion wiped out in 24 hours, affecting over 1.6 million traders [1]. The crash was triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, which sent shockwaves through global markets.
plummeted to $102,000, while altcoins on Binance and other exchanges crashed by up to 90% [2]. The total crypto market capitalization fell to $3.87 trillion, erasing over $400 billion in value within hours [3].The sell-off was exacerbated by fragile altcoin liquidity and overexposed leverage, particularly in cross-margin positions on centralized exchanges (CEXs). Arthur Hayes, co-founder of BitMEX, attributed the collapse to automatic liquidations of collateral tied to leveraged altcoin positions, stating that "many high-quality alts may not return to their previous lows in the short term" [7]. On-chain data revealed that a single whale had opened massive short positions on Bitcoin and
days before the tariff announcement, profiting $200 million from the crash [1].
The liquidation event surpassed previous records, including the March 2020 COVID-19 crash ($1.6 billion) and the FTX collapse (under $2 billion). Over $16.7 billion of the total liquidations came from long positions, with the largest single liquidation-a $203 million ETH-USDT trade-occurring on Hyperliquid [3]. Binance, the world's largest exchange, faced operational challenges due to heavy load, though it restored services within hours [5].
Ethereum, a key benchmark for crypto market sentiment, dropped over 16% during the crisis. Ethena's USDe stablecoin briefly lost its dollar peg, trading at $0.9996, highlighting systemic stress in derivatives markets [3]. Smaller altcoins like
, , and saw losses between 15% and 40%, with many tokens falling 80–90% at their worst points [3].The event coincided with broader market turmoil, as the S&P 500 posted its worst single-day loss since April 2025. Analysts noted that Bitcoin's resilience above $110,000 signaled a potential market reset rather than the end of the bull cycle. Institutional interest in Bitcoin ETFs and gold ETFs remained strong, with over $600 million in inflows for spot Bitcoin ETFs in October [2].
Arthur Hayes and other experts emphasized that the crash was driven by macroeconomic factors-specifically, Trump's tariff policy and global liquidity conditions-rather than the traditional four-year Bitcoin halving cycle. Hayes predicted that accommodative monetary policies in the U.S. and China would prolong the bull market, with Bitcoin potentially reaching $250,000 by year-end . However, he warned that most altcoins lack product-market fit and are unlikely to recover, citing overvalued venture-capital-backed tokens as a key risk .
The U.S. government shutdown further compounded uncertainty, delaying key economic data releases and leaving traders without critical market indicators. While Bitcoin partially rebounded to $113,294 by midday Hong Kong time, the CoinDesk 20 Index remained down 12.1% [3]. Analysts suggested that the crash could accelerate regulatory scrutiny of CEX risk management practices and spur adoption of stablecoins as a hedge against volatility [6].
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