Crypto market tumbles $19 billion as Trump’s 100% China tariffs trigger sell-off

The cryptocurrency market experienced historic losses on Saturday, with over $19 billion wiped out in what data tracker Coinglass described.

As “the largest liquidation event in crypto history”, following US President Donald Trump’s announcement of 100% tariffs on China and new export controls on software. Major cryptocurrencies Bitcoin and Ethereum plunged as investors rushed to safer assets like stablecoins, reacting to fears of a renewed trade war, according to The Independent.

Bitcoin and Ethereum Take a Hit

Trump’s announcement on X (formerly Twitter) caused Bitcoin to drop more than 12%, after touching a record high of over $125,000 earlier in the week. By Saturday morning in London, Bitcoin traded below $113,000. Ethereum experienced similar losses, with record liquidations as traders exited positions en masse.

Coinglass reported that over 1.6 million traders were liquidated in the past 24 hours, with more than $7 billion in positions sold in less than an hour on Friday. The actual losses could be higher, as exchanges like Binance report only one liquidation per second.

Binance Outage Worsens Chaos

The market turmoil was compounded by technical issues at Binance, the world’s largest crypto exchange. Users reported frozen accounts, failed stop-loss orders, and flash crashes that briefly sent altcoins such as Enjin (ENJ) and Cosmos (ATOM) to near-zero prices before rebounding. Binance attributed the disruption to “heavy market activity” and assured users that “funds are SAFU,” though critics said the outage amplified the crash. Similar problems were reported on Coinbase and Robinhood.

Experts Warn of Wider Impact

Brian Strugats, head trader at Multicoin Capital, warned that the focus now is on “counterparty exposure and whether this triggers broader market contagion,” with some estimates putting total liquidations above $30 billion.

Caroline Mauron, co-founder of Orbit Markets, noted that the next major support level for Bitcoin is $100,000, cautioning that a drop below this could end the past three-year bull cycle. Data from Deribit shows the highest concentration of Bitcoin put options at $110,000 and $100,000 levels.

Broader Financial Ripple

The escalating US-China trade tensions impacted not just cryptocurrencies, but also stocks, oil, and commodities, while boosting demand for safe-haven assets like Treasuries and gold.

Ravi Doshi, co-head of markets at FalconX, said the firm saw “outsized demand for downside protection,” reflecting widespread uncertainty. David Jeong, CEO of Tread.fi, called the event a “black swan”, noting that leveraged perpetual futures, which allow 24/7 trading, amplified losses for many traders and institutions.

Vincent Liu, CIO at Kronos Research, added, “The rout was sparked by US-China tariff fears but fueled by institutional over-leverage. It highlights crypto’s sensitivity to macroeconomic developments.”