The cryptocurrency market experienced a shockwave on Friday following President Donald Trump’s announcement of a 100% tariff increase on Chinese imports, combined with new export controls on critical software.
According to Coinglass, this geopolitical event triggered the largest crypto liquidation in history, with over $19 billion worth of leveraged positions erased in just 24 hours, affecting around 1.6 million traders.
Bitcoin led the liquidation spree, losing in long positions after sliding over 12% from its recent all-time high above $125,000 to below $113,000 during Friday’s trading session in New York. The leading losses were incurred by Bitcoin at $5.34 billion and Ethereum at $4.39 billion, with Solana contributing $2 billion, and other altcoins accounting for an additional $1.5 billion.
In its post on X, Coinglass said the total might be much higher given that exchanges do not necessarily report such orders in real time. Binance Holdings, world’s largest crypto exchange, only reports one liquidation order per second, according to the post.
The sudden tariff hike heightened fears of a worsening US-China trade war, sending shockwaves not only through cryptocurrencies but into traditional markets such as stocks and oil. Brian Strugats, head trader at Multicoin Capital, cautioned about counterparty risks and potential contagion effects that could amplify market turbulence. Some analysts speculate total liquidations might exceed $30 billion as market participants reassess risks amid geopolitical tensions.
Trump announced that starting November 1, the United States would impose a doubling of tariffs on Chinese goods as a response to what he described as China’s “aggressive trade position,” including Beijing’s recent export restrictions on rare earth minerals essential for technology manufacturing. The move also includes new US export controls on software, further intensifying the economic standoff.
This dramatic liquidation underscores the volatility of crypto markets in response to geopolitical events and regulatory changes. Investors are now closely watching how these tariffs and trade policies will unfold, as ongoing tensions threaten market stability across both traditional and digital asset classes.
