The crypto market endured one of its most violent shakeouts in history on Friday, with nearly $10 billion in leveraged positions wiped out following President Donald Trump’s announcement of new 100% tariffs on Chinese imports.
According to CoinGlass, roughly $9.55 billion in open interest vanished within 24 hours — a record single-day liquidation. Over 1.5 million traders were forced out of their positions, including $8 billion in long trades and $1.55 billion in shorts.
Bitcoin and Ethereum led the collapse, losing $1.37 billion and $1.26 billion in liquidations respectively. The largest single wipeout occurred on HTX, where a BTC/USDT position worth $87 million was liquidated.
More about: Trump Escalates Trade War With China: 100% Tariffs, Software Export Bans
Trade War Sparks Panic Selling
The crash followed Trump’s retaliatory tariff order, which reignited fears of a US–China trade war. The president announced a 100% duty on all Chinese goods effective November 1, citing Beijing’s new export restrictions on rare earth materials.
“Markets are reacting to renewed uncertainty in global trade,” said Ravi Doshi, co-head of markets at FalconX. “We saw an explosion in downside hedges and one of the fastest deleveraging events since 2022.”
Bitcoin plunged from above $122,000 to as low as $102,000, before recovering to around $111,000 by early Saturday. Ethereum saw a similar pattern, dipping below $5,800 before partially rebounding.
Trump later hinted that his meeting with President Xi Jinping is still possible, softening panic across global risk assets and helping crypto stabilize overnight.
Winners Amid the Wreck
While millions of traders were liquidated, at least one major whale walked away with enormous profits. A trader on Hyperliquid reportedly earned $190–$200 million by shorting Bitcoin and Ethereum moments before the crash.
“The whale closed 90% of his BTC short and fully closed his ETH short right before the cascade,” said trader @mlmabc on X.
What’s Next for Crypto?
Analysts expect the market to find footing soon as gold — now above $4,000 per ounce — enters overbought territory, prompting potential capital rotation back into digital assets.
Crypto strategist Benjamin Cowen believes Ethereum could lead the next rally, noting that the market’s macro setup remains bullish with spot altcoin ETFs pending US approval.
Still, sentiment remains fragile. As one analyst put it:
“This wasn’t just a selloff — it was a reminder that macro still rules crypto.”
The crypto market’s $10 billion liquidation highlights how tightly it’s tied to global macro shocks. Trump’s tariffs may have sparked the crash, but the rebound — if it comes — will test whether crypto can truly act as a hedge in a world where trade wars now move markets as fast as algorithms do.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
