Cryptomarket Suffers "$19.3 Billion Largest Ever" Position Liquidation Following Trump's Announcement of New 100% Tariffs on China
A sudden escalation in US-China trade tensions has sent shockwaves through global financial markets, causing a sharp decline in cryptocurrencies, major US stock indices, and shares of leading tech companies like Nvidia, Apple, and Tesla.
The Catalyst: A New Round of Tariffs
The market panic was ignited by former President Donald Trump's announcement of an additional 100% tariff on all Chinese imports, set to take effect on November 1, 2025. The new measures also include export controls on "all critical software." This move came just a day after China tightened its own export rules on goods containing rare earth metals, signaling a deepening trade conflict.
Cryptocurrency Market Collapses
The cryptocurrency market reacted almost instantly. Within hours of the announcement, Bitcoin plummeted from $122,000 to $102,000. Ethereum followed, dropping from $4,400 to $3,435, while Toncoin briefly lost 40% of its value, hitting a low of $1.2. By the morning of October 11, prices had slightly recovered, with BTC trading around $112,200.
In just 24 hours, a historic $19.3 billion was wiped out as 1.6 million crypto traders had their positions liquidated, primarily impacting long-term holders.
According to Bloomberg, this liquidation event set a new all-time record. For perspective, the market crash during the 2020 pandemic saw liquidations estimated between $1 billion and $1.2 billion.
Wall Street Follows Suit
US stock indices experienced their largest single-day percentage drop since April 2025. The S&P 500 fell by 2.71%, while the tech-heavy Nasdaq Composite plunged 3.56%.
Major technology stocks took a significant hit in Friday's trading session:
- AMD: -6%
- Tesla: -4%
- Amazon: -3%
- Nvidia & Apple: -2% each
US-listed Chinese companies were also heavily impacted, with Alibaba and Baidu shares falling by 8%, while JD.com and PDD Holdings dropped by 6.6% and 5.2% respectively.