Solana News Today: Trump's Tariffs Trigger $19B Crypto Liquidation, Exposing Market's Geopolitical Vulnerability

President Donald Trump's announcement of a 100% tariff on Chinese imports triggered the largest cryptocurrency liquidation in history, wiping out $19 billion in leveraged positions as Bitcoin, Ethereum, and Solana plummeted. The move, aimed at curbing trade deficits, sent shockwaves through global markets, with the Nasdaq and S&P 500 recording their steepest declines in six months .

Bitcoin (BTC) dropped nearly 10% in five days, trading at $111,616.20 by late Friday after briefly dipping to $103,000 . Ethereum (ETH) fell 14% to $3,742.88, while Solana (SOL) lost almost 20%, hitting $178.72 . The selloff was exacerbated by overleveraged positions, with analysts warning of a "contagion effect" as forced liquidations cascaded across exchanges . Brian Strugats of Multicoin Capital estimated total liquidations could exceed $30 billion when including smaller exchanges and decentralized platforms .

Ethereum's decline underscored its vulnerability to macroeconomic shifts, particularly in DeFi sectors reliant on global trade flows. "The altcoin complex got absolutely eviscerated," said Zaheer Ebtikar of Split Capital, noting Ethereum's 14% drop mirrored broader tech stock declines . Meanwhile, Bitcoin's price action drew comparisons to the March 2020 coronavirus crash, with some traders labeling it a "shakeout" that could create buying opportunities .

Solana's sharp correction-its price fell from $253 to $190 before rebounding-highlighted both its fragility and long-term potential. On-chain metrics, however, suggest resilience. Solana's Total Value Locked (TVL) rose to $14.2 billion, and derivatives data showed a bullish shift in funding rates as traders anticipated a recovery . Analysts at Tread.fi and Kronos Research noted that Solana's ecosystem growth, including rising stablecoin adoption and institutional interest, could support a rebound toward its all-time high of $295.83 .

The broader crypto market, which lost $560 billion in market capitalization within 24 hours, now faces a critical juncture. While some see the selloff as a temporary correction, others warn of prolonged volatility. Edul Patel of Mudrex argued that October dips historically lead to 20% relief rallies, but David Jeong of Tread.fi cautioned that institutional over-leverage could prolong the downturn .

Regulatory and geopolitical uncertainties further cloud the outlook. A recent federal court ruling challenged Trump's tariff authority under the International Emergency Economic Powers Act, delaying enforcement until October 14 and introducing short-term market jitters . If upheld, the tariffs could reinforce crypto's role as a hedge against inflation and geopolitical risk, but their removal might stabilize trade and reduce demand for digital assets .

For now, traders are watching key support levels: Bitcoin's $100,000 threshold and Solana's $230 mark. "The next move will hinge on whether Beijing responds in kind or signals willingness to reopen negotiations," said Vincent Liu of Kronos Research .

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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 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] Trump Crashes Crypto Markets With 100% Tariff On ... (https://beincrypto.com/trump-china-tariff-triggers-200-billion-crypto-crash/)

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

[6] Solana Price Forecast: SOL Bulls Target $295.83 Amid ... (https://thecurrencyanalytics.com/altcoins/sol-bulls-eye-all-time-high-as-on-chain-and-derivatives-data-turn-positive-202941)

[7] Solana Eyes Rally Amid Ecosystem Growth and ... (https://www.fxleaders.com/news/2025/10/09/solana-eyes-rally-amid-ecosystem-growth-and-institutional-demand/)

[12] How the 2025 Court Ruling on Trump's Tariffs Could Impact Crypto (https://bitcoinchaser.com/2025-court-ruling-trumps-tariffs-crypto/)

[13] How Trade Wars Are Shaking Global and Crypto ... (https://coinpedia.org/research-report/tariff-turmoil-how-trade-wars-are-shaking-global-and-crypto-markets/)