Global cryptocurrency markets have suffered a historic crash on Friday, wiping out over $19 billion in value, after U.S. President Donald Trump announced a sweeping 100 percent tariff on Chinese imports, effective November 1.
The move, aimed at retaliating against China’s planned export restrictions on rare earth elements, sent shockwaves through crypto markets and traditional markets alike.
Bitcoin (BTC) led the downturn, falling to $102,000 on Binance futures and $107,000 on Coinbase, a three-month low. Ethereum (ETH) dropped to $3,500, while Solana (SOL) slipped below $140, marking intraday losses of up to 14 percent. Altcoins, memecoins, and AI sector tokens suffered similar declines, some losing over 35 percent.
In total, $9.4 billion in crypto positions were liquidated within 24 hours, according to Coinglass, with $7.15 billion has erased from leveraged long positions alone. The firm also revealed that more than 1.6 million traders were liquidated, making this the largest liquidation event in crypto history.
The Crypto market meltdown followed Trump’s social media announcement confirming the 100 percent tariffs, a direct response to China’s tightening grip on the export of rare earths, critical for producing chips, semiconductors, and crypto mining equipment. The policy escalation is the latest flashpoint in the US-China trade and tech war.
Economic analysts warn that the tariffs may disrupt global supply chains for AI and crypto infrastructure, undermining confidence across the digital asset space. The crypto market cap plunged 11.8 percent to $3.64 trillion within hours, erasing weeks of bullish momentum.
Whale Activity and institutional losses in crypto markets
Amid the turmoil, a major ‘Bitcoin OG’ wallet opening $1.1 billion in short positions on BTC and ETH before the crash of Crypto market, netting over $27 million in unrealized profit. Meanwhile, institutional traders bore the brunt of the liquidation wave, with Deribit data showing heavy put option activity around the $100,000 BTC level.
Caroline Mauron, co-founder of Orbit Markets, warned that a fall below $100,000 could signal the end of the current bull cycle.
Binance glitches deepen panic
As the Crypto markets plunged, Binance, the world’s largest cryptocurrency exchange, experienced major technical issues, with users reporting frozen accounts, failed stop-losses, and sudden flash crashes. Prices for coins like Enjin (ENJ) and Cosmos (ATOM) briefly plummeted to near-zero values before recovering.
Binance cited ‘heavy market activity’ but reassured users that ‘funds are SAFU’. However, critics alleged that the exchange profited from user losses during the outage. Similar disruptions were reported on Coinbase and Robinhood.
Stock market mirrors crypto losses
The tariff shock has reverberated across traditional markets too. The S&P 500 fell 2.7 percent, while the Dow Jones shed 1.9 percent. Crypto-linked stocks also tumbled:
Coinbase (COIN) dropped 7.75 percent
MARA Holdings declined 7.67 percent
Bullish (BLSH) fell 9.42 percent
MicroStrategy (MSTR) slid 4.84 percent
MSTR’s market NAV dropped to 1.18, the lowest in two years.
Contagion Fears and Broader Implications
Image Credits: Freepik | Cropped by GBN
Market experts now warn of a broader financial contagion. Brian Strugats of Multicoin Capital said attention is shifting to ‘counterparty exposure’, while Vincent Liu of Kronos Research called the Crypto market crash ‘a textbook case of institutional over-leverage‘. Ravi Doshi, co-head at FalconX, noted that a spike in demand for downside protection, as investors moved to safe-haven assets such as gold and US Treasuries.
Historical echoes and future outlook
The crash of Crypto market mirrors previous market downturns tied to Trump-era trade policies; including tariff-related drops in April and August 2025. Analysts fear that renewed geopolitical tensions could stall recovery across global risk assets.
With market volatility surging and macroeconomic risks rising, the crypto sector now faces a crucial test of resilience. As of press time, market participants await regulatory updates and possible exchange probes, while investors eye the $100,000 Bitcoin support level as the next critical milestone.
