- Crypto markets crashed after Trump’s new China tariffs, wiping out $9.5B in trades as Bitcoin and Ethereum led the plunge.
- Over 1.5M traders faced liquidations as panic selling surged, though some coins like Zcash showed strength amid the chaos.
- Rising tariffs and global tension drove investors from risky tokens toward safer options like privacy and gold-backed assets.
An abrupt and severe decline has left the global cryptocurrency market reeling. The entire market capitalization has fallen to $3.74 trillion, a sharp 9.31% decrease in just one day, according to CoinMarketCap. The crash was mostly caused by Bitcoin and Ethereum, and exchanges saw widespread liquidations.
U.S. President Donald Trump’s announcement of fresh 100% tariffs on Chinese imports and more limitations on software exports served as the catalyst. Global markets were shook by this decision, which caused traders to pull out of riskier assets like cryptocurrency.
Ethereum fell 11.54% to $3,827, while Bitcoin fell 7.91% to $111,800. There was exceptional trading activity in both assets, with Bitcoin’s 24-hour volume surpassing $196 billion. The value of Ethereum also increased to almost $119 billion.
Consequently, Bitcoin’s dominance climbed to 59.51%, showing that investors sought relative stability in the leading crypto asset. Meanwhile, the total crypto trading volume skyrocketed by 156.72% to $515 billion, reflecting panic-driven trading and liquidations.
Massive Liquidations Deepen the Crash
CoinGlass reported that over 1.5 million traders were liquidated in the past day, erasing nearly $9.55 billion in open interest. Around $8 billion of that came from long positions, underscoring how leveraged bullish bets unraveled during the sell-off. Bitcoin accounted for $1.37 billion in liquidations, followed closely by Ethereum at $1.26 billion. HTX recorded the largest single liquidation, wiping out $87.53 million in a BTC/USDT trade.
Ravi Doshi, co-head of markets at FalconX, explained, “A renewed trade war between China and the US erupted on Friday, causing uncertainty in markets and a rout in risk assets.” He added that FalconX’s derivatives team saw a surge in demand for downside hedges as traders braced for further declines.
Despite the broad crash, some tokens held firm. Zcash (ZEC) led gainers with a 10.36% jump to $257.56 amid strong privacy demand. MemeCore (M) gained 8.04%, while UNUS SED LEO and Tether Gold saw modest increases. Analysts believe investors are rotating toward defensive or utility-based assets to shield against volatility.
