Crypto markets tumble, shedding close to $1 trillion after Trump’s tariff decision on China
Trump’s 100% Tariff on China Triggers $1 Trillion Crypto Market Meltdown
A stunning move by U.S. President Donald J. Trump — announcing a 100% tariff on Chinese exports — sent shockwaves through global financial markets over the weekend, sparking one of the most dramatic cryptocurrency sell-offs in history. Nearly $1 trillion in market value evaporated within just 24 hours.
In his statement, Trump accused Beijing of adopting an “unprecedented stance” by restricting exports of key materials essential to global tech manufacturing, adding that the U.S. had “no choice but to respond in kind.”
“Starting November 1, 2025 — or sooner, depending on China’s actions — the United States of America will impose a tariff of 100 percent on China,” the president declared on Truth Social.
The announcement blindsided investors and triggered panic across crypto markets, especially with U.S. markets closed and liquidity thin. The sell-off began in Asia and rapidly spread to Europe and beyond. Bitcoin plunged from over $125,000 to below $104,000, while Ethereum dropped 11% to around $3,878. Major altcoins — including XRP, Dogecoin, and Cardano — crashed by up to 30%, as a wave of forced liquidations rippled across exchanges.
According to CoinGlass, more than $20 billion worth of leveraged positions were wiped out in 24 hours — marking the largest single-day liquidation event in crypto history. Roughly 1.6 million traders saw their positions closed, most of them holding long bets on Bitcoin and Ethereum.
Data cited by Business Am indicated that open interest — the crypto market’s barometer of speculative activity — plunged nearly 40% overnight, signaling a sharp purge of leveraged positions.
Despite the turmoil, analysts said the crash was driven by panic and liquidity pressure, not by flaws in blockchain fundamentals.
“The sell-off was mechanical — it had little to do with crypto fundamentals and everything to do with macro panic,” said Daniel Parreira, Senior Vice President for Africa at Thunes, a global payments firm.
By Monday, Bitcoin had slightly rebounded to around $111,800, as traders called the reaction an “overcorrection” to Trump’s tariff announcement.
“This wasn’t irrational behavior,” noted Chris Mellor, Head of ETF Product Management at Invesco. “Bitcoin now trades like a high-beta macro asset — it responds to trade policy, inflation data, and central bank moves. That’s a sign of maturity, not instability.”
