Key Takeaways
- Bitcoin crashed 8.4% to $104,782, wiping $19 billion from the crypto market.
- The sell-off was triggered by Donald Trump’s announcement of 100% tariffs on Chinese tech.
- Over 1.6 million traders were liquidated in 24 hours, with $7 billion sold in under an hour.
- Experts warn total liquidations could exceed $30 billion, raising contagion fears.
The cryptocurrency market experienced its largest single-day liquidation in history on October 10, with Bitcoin leading an $19 billion wipeout. The crash was directly triggered by former US President Donald Trump’s escalation of the US-China trade war through Truth Social, where he announced 100% tariffs on Chinese tech exports and strict export controls.
Market Carnage and Record Liquidations
Global financial markets reeled from the news, with the S&P 500 sliding over 2% on Friday. Crypto markets saw unprecedented turmoil as Coinglass reported over 1.6 million traders liquidated within 24 hours. A staggering $7 billion in positions was sold off in under one hour alone.
Brian Strugats, head trader at Multicoin Capital, warned that total liquidations could surpass $30 billion, raising serious concerns about counterparty exposure and potential broader market contagion.
Altcoin Bloodbath
Other major cryptocurrencies suffered heavy losses:
- Ethereum fell 5.8% to $3,637
- Binance Coin dropped 6.6% to $1,094.09
- XRP plummeted 22.85% to $2.33, slashing its market cap by 16.31%
- Tether saw a slight 0.1% dip to $1
Bullish Outlook Amid the Chaos
Despite the severe downturn, some experts remain optimistic. Edul Patel, CEO of Mudrex, suggested the market retains a bullish outlook.
“Bitcoin briefly tested $102,000 before recovering to $113,000. Historical October corrections often precede relief rallies of up to 21%,” Patel noted.
He pointed to potential liquidity from capital rotation out of gold and anticipated U.S. spot altcoin ETF approvals. Patel views the dip as a buying opportunity for long-term investors in assets like and .
Geopolitical Risks and Future Outlook
The historic plunge underscores digital assets’ vulnerability to geopolitical tensions. As the US-China trade war intensifies, investors are bracing for further volatility and watching for signs of wider market fallout. The event marks a sobering reminder of how traditional political decisions can rapidly destabilize crypto markets.
