Bitcoin plunges below $102K as U.S.-China tariff war triggers $700M liquidations, extreme volatility, and massive altcoins crash across global markets.
Bitcoin suffered a massive drop below $102,000 recently. Data from Binance confirms the volatile flash crash. BTC quickly rebounded to $110,563.5. The price was, however, lower by 7.03 percent on the day. Ether was also excessively volatile. ETH fell to a low of $3,400.00. It later rose to 3,722.30. This was a huge 9.11% drop in general.
The amount of total liquidation was approximately 706.2 million. This was within the last 24 hours. Long positions in particular were 648.5 million. It is the biggest one-day liquidation this year, which includes a large amount of liquidation on a single day. The data on Coinglass proves the high pressure of the market. Moreover, the total liquidations in all the markets came to 19.134 billion. Of this total, long positions were approximately 16.679 billion.
On Friday, the US President Donald Trump announced a new tariff. He introduced a high tariff of 100 per cent on China. This news was thus a blow to Bitcoin. BTC fell below the important support of $110,000. Therefore, the announcement was an important market trigger.
Related Reading: Crypto News: Trump’s Tariff Threat to China Leads to Bitcoin Dip Below $120K | Live Bitcoin News
The tariffs were a direct response by Trump to China. China tried to impose export taxes on rare earth minerals. It is worth noting that these minerals play an important role in the production of computer chips. Trump has put his reasoning on Truth Social. China had sent a most unfriendly message to the globe. Hence, he asserted that trade aggression was required.
China said that it would exercise mass export restrictions. This move was said to be effective on November 1, 2025. In addition, the controls were to be done on virtually all the products they produce. Such a drastic action caused the immediate reaction of the U.S. The trade conflicts immediately overflowed into unstable crypto markets.
At the beginning of this morning, several altcoins crashed. Some tokens in Binance lost more than 90 percent of their value. An example is that IOTX momentarily fell to $0. This caused Fear in the market at once. A large number of assets were affected by the market crash.
Arthur Hayes, who is the co-founder of BitMEX, provided his remarks. He observed that there were continuous rumors in the market about the sudden drop. In particular, he implied significant centralized exchanges (CEXs). They liquidated collateral automatically associated with cross-margin positions. This act, in turn, led to the sharp drops in altcoins.
Hayes was quoted as saying that most high-quality altcoins were hit. Nevertheless, they will hardly be able to go back to those drastic lows in the near future. The forced liquidation event must have cleared weak leverage. This paves the way to a possible recovery in the market. In fact, powerful altcoins are now expected to stabilize.
The huge liquidation exercise costing 700 million dollars is a historic one. It shows the leverage that is high in the market. The news of the trade war was, therefore, a good trigger. The market now has to contend with the aftermath. The volatility is high in all the major assets.
The quick fall and rapid rise of Bitcoin are resilient. As such, the shocks do not weaken the underlying demand. Investors have been encouraged to be watchful. Moreover, the political and economic insecurity is still going on. Trade tensions have to be observed by the market players.
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