- Trump’s 100% tariffs on Chinese goods sparked a historic crypto sell-off, wiping out $670 billion in market value in a single day.
- Over 1.6 million traders were liquidated as Bitcoin and altcoins plunged, highlighting extreme panic and forced sell-offs.
- Despite the crash, the broader tech investment and Fed’s easing hints at deeper market shifts beyond the tariff headlines.
The crypto market fell sharply after Trump announced high tariffs on Chinese goods. Fear caused big sell-offs, pushing Bitcoin and other coins down and leading to one of the biggest liquidations ever.
Crypto Market Crashes After Trump’s Tariff Announcement
According to insight shared by the CryptoRus market, the U.S. fell hard after U.S. President Donald Trump announced a 100% tariff on Chinese goods, starting November 1. Along with export controls on key software, this announcement raised fears and caused traders to sell off quickly. The news made the market lose as much as $670 billion in value in a single day.
Bitcoin fell more than 10%, a big drop for a usually stable coin. Ethereum dropped 16.25%, while many altcoins lost even more. Cardano fell 42.67%, XRP dropped 28.9%, and some Binance altcoins fell up to 90%. The sell-off was wide and sharp.
Massive Liquidations Worsen the Market Drop
The tariff news triggered many forced liquidations. Data from Coinglass shows over 1.6 million traders lost their positions in 24 hours, with total liquidations topping $19 billion. Most losses came from long positions, which accounted for about $5.67 billion. This showed how caught off guard the market was by the sudden crash.
Exchanges like Binance, Coinbase, and Kraken had trouble handling the trading rush. Users saw delays and freezing of order books. Binance later said funds were safe but admitted systems were stressed due to the volume.
Trade Tensions Add Pressure But Long-Term Trends Are Mixed
Trump’s tariffs and China’s export limits on rare earth materials hit U.S. tech and defense industries hard. The U.S. gets almost 70% of its rare earths from China, making this a serious trade issue.
At the same time, the U.S. dollar has fallen more than 10% this year. The Federal Reserve is planning rate cuts as jobs data slows. Big Tech keeps investing billions in AI, showing that short-term shocks like this tariff news may not stop bigger changes.
Arthur Hayes, BitMEX co-founder, said forced liquidations caused much of the sell-off but also saw it as a buying chance. The market is adjusting to new risks while waiting to see what happens next.
