Bitcoin Crashes 10% as Trump’s China Tariff Threat Triggers $7B Crypto Liquidation

Cryptocurrency markets plunged Friday in one of the steepest sell-offs of the year, as escalating U.S.-China trade tensions sparked a wave of panic selling and more than $7 billion in leveraged liquidations, according to CoinGlass.

Bitcoin (BTC) tumbled 12% over 24 hours, falling below $110,000 after trading weakly around $117,000 earlier in the day. The downturn accelerated after President Donald Trump announced plans to impose an additional 100% tariff on Chinese goods starting November 1, sending shockwaves through global markets.

The sell-off spread rapidly across major altcoins. Ether (ETH) sank 16% to below $3,700, while Solana (SOL), XRP, and Dogecoin (DOGE) dropped between 20% and 30%. Tokens like Cardano (ADA), Chainlink (LINK), and Aave (AAVE) fell as much as 40%, marking one of the most severe single-day corrections since the 2020 pandemic crash.

Trump’s late-afternoon Truth Social post, confirming the tariff hike and announcing new export controls on “any and all critical software,” triggered Bitcoin’s sharpest leg down — a $3,000 plunge within minutes.

“This was a Covid-level nuke,” wrote trader Bob Loukas on X, calling the sell-off “the mother of shakeouts.”

Market participants echoed the shock.

• “Brutal day,” said Ram Ahluwalia, founder of Lumida Wealth, attributing the fall to Trump’s tariff comments and “overbought” market conditions.
• Prominent trader Pentoshi described the event as “top 3 all-time flush,” noting that altcoins were “wrecked as badly as during the Covid crash.”
• Zaheer Ebtikar, CIO at Split Capital, said the “altcoin complex got absolutely eviscerated,” calling it a “full leverage reset” not seen in over a year.

The sudden crash highlights the crypto market’s continued sensitivity to macroeconomic and geopolitical shocks — and how swiftly speculative leverage can unwind under stress.