Friday turned disastrous for the crypto market as U.S. President Donald Trump announced an additional 100% tariff on Chinese goods, sparking a massive sell-off across digital assets. Bitcoin (BTC), which had already been trading weak at around $117,000 following earlier tariff threats, plunged below $110,000 — marking a 12% drop in 24 hours. Ether (ETH) also tumbled 16%, slipping under $3,700, while major altcoins like XRP, Solana (SOL), and Dogecoin (DOGE) saw losses ranging from 20% to 30%. Other tokens such as Cardano (ADA), Chainlink (LINK), and Aave (AAVE) suffered even steeper declines, dropping as much as 40%.
According to CoinGlass, over $7 billion in leveraged positions were liquidated as traders betting on rising prices faced a brutal wipeout. The sell-off was triggered after Trump’s announcement that tariffs on Chinese imports would double starting November 1, in retaliation for China’s export restrictions on rare earth metals. He also revealed plans to impose export controls on “any and all critical software,” sending Bitcoin down another $3,000 instantly after the post went live on Truth Social.
Market analysts compared the sudden crash to the pandemic-induced meltdown of March 2020. “Covid-level nukes,” wrote trader Bob Loukas on X, describing the violent market reaction. Ram Ahluwalia, CEO of Lumida Wealth, noted that the combination of Trump’s comments and “overbought” market conditions led to the sharp correction. Prominent trader Pentoshi called it one of the “top three flushes of all time,” while Split Capital’s Zaheer Ebtikar described the situation as a “full leverage reset and market dislocation,” with altcoins reaching their lowest levels in more than a year.
The unprecedented move by Trump and the subsequent crypto flash crash highlight the fragile link between global geopolitics and digital asset markets. Investors now brace for heightened volatility as the November tariff deadline approaches.
