Nearly $1 Trillion Wiped Out from Crypto Markets in 24 Hours as Trump’s China Tariff Sparks Global Panic
In a stunning development, nearly $1 trillion in market value vanished from global cryptocurrencies after U.S. President Donald J. Trump announced a 100% tariff on Chinese exports, sending global investors into a frenzy.
The announcement, made via Trump’s Truth Social account over the weekend, accused China of restricting exports of key materials vital to global technology manufacturing — prompting what Trump called a “necessary response.”
“Starting November 1st, 2025, or sooner depending on China’s actions, the United States will impose a tariff of 100 percent on China,” Trump declared.
The post blindsided markets. With U.S. exchanges closed and global liquidity thin, panic spread rapidly across Asia and Europe before engulfing global crypto exchanges. Bitcoin plunged from over $125,000 to below $104,000, while Ethereum tumbled 11% to $3,878. Popular altcoins such as XRP, Dogecoin, and Cardano were hit with losses of up to 30%, triggering one of the worst liquidation events in crypto history.
According to CoinGlass, over $20 billion in leveraged positions were liquidated in just 24 hours, marking the largest single-day wipeout ever. Approximately 1.6 million traders had their positions forcibly closed, most of them holding long bets on Bitcoin and Ethereum.
Data from Business Am showed that open interest, a measure akin to the market’s Brand Strength Index, dropped nearly 40% overnight, signaling a widespread deleveraging across exchanges.
Despite the magnitude of the crash, analysts maintain that it was a liquidity-driven event rather than a structural collapse.
“The sell-off was mechanical. It had little to do with blockchain fundamentals and everything to do with macro panic,” said Daniel Parreira, Senior Vice President for Africa at Thunes, a global payments network.
By Monday morning, Bitcoin had rebounded slightly to around $111,800, as traders described the initial reaction as excessive.
“This wasn’t irrational behavior,” noted Chris Mellor, Head of ETF Product Management at Invesco. “Bitcoin now trades like a high-beta macro asset — sensitive to trade policy, inflation data, and central bank decisions. That reflects maturity, not immaturity.”
Read More News: PrecedenceResearch.com
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