Crypto markets experienced unprecedented volatility on Friday following an announcement by former President Donald Trump on Truth Social regarding new US tariffs on Chinese imports. The tariffs, set to take effect on November 1st, would impose an additional 100% duty on Chinese imports on top of existing tariffs.
The announcement triggered the largest single-day liquidation in crypto history, with over $19 billion in perpetual futures positions liquidated across centralized and decentralized exchanges. Bitcoin, which had been trading around $120,000, dropped over 9% to a low of $110,000, while some altcoins recorded declines exceeding 50%.
Despite the dramatic sell-off, institutional investors appeared to remain largely unshaken. Spot Bitcoin ETFs recorded relatively minor net outflows of $4.5 million, in stark contrast to past market crashes that have seen hundreds of millions of dollars exit the market.
BlackRock’s IBIT ETF recorded an inflow of $74.2 million on Friday and recently surpassed the 800,000 bitcoin AUM milestone.
Markets began recovering following a subsequent post from Trump on Truth Social, stating: “Don’t worry about China, it will all be fine.” Bitcoin rebounded to $113,000, signaling renewed optimism in the market.
Simon Peters, Market Analyst, commented: “Friday’s reaction shows the crypto market is extremely sensitive to geopolitical developments, but the resilience of institutional investors highlights growing maturity in the market. While retail traders were heavily impacted, ETFs like IBIT show that professional money is holding steady, which bodes well for recovery.”
Crypto investors and analysts alike are keeping a close eye on Trump’s Truth Social updates for potential market-moving announcements this week.
