Crypto Plunges 10%, Liquidations Hit 19B On Trump’s China Tariffs

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The cryptocurrency market fell by more than 10% after US President Donald Trump announced 100% tariffs on Chinese exports from November 1, resulting in the liquidation of $19 billion.

Shares of Solana fell 16%, XRP 14%, Ethereum 12%, Bitcoin 9%, and Dogecoin 22%, as traders rushed to unleverage positions.

Data from CoinGlass showed that most of the $19 billion in liquidations came from long positions as markets turned risk-off. One merchant estimated that it was “Probably the largest liquidation event“, in dollar terms, in the history of cryptocurrencies.”

Trump’s actions came in response to what he described as a “very aggressive” stance by China after it unveiled sweeping controls on exports of rare earth elements that are essential to products from cars to smartphones.

The announcement sent investors fleeing risky assets as the Fear and Greed Cryptocurrency Index collapsed from a “greed” reading of 64 to a “fear” level of 27 in a single day as markets braced for an escalating confrontation between the world’s two largest economies.

Cryptocurrency Fear and Greed Index (Source: Alternative.me)

“We just learned that China has taken an unusually aggressive stance on trade by sending a very hostile letter to the world stating that, effective November 1, 2025, they will impose broad export controls on almost every product they make, and some they don’t even make,” Trump wrote in a Twitter post. Social truth.

He added that the United States will do so It also imposed export controls on “any and all critical software.” Trump initially indicated he would withdraw from a meeting with Chinese President Xi Jinping. But he later said that the meeting had not been canceled but that he did not know if “we would hold it.”

The S&P 500 fell 2.7%, the Nasdaq 100 fell 3.5%, and the price of oil fell to its lowest level since May. Gold rose nearly 1.5% as investors sought safe-haven assets.

Fears of a renewed trade war are making investors avoid risk

Data from CoinGlass He appears That $16.81 billion of the liquidations were from long positions, which are bets that cryptocurrency prices will rise. The remaining $2.50 billion was wiped out of short positions.

Cryptocurrency market leaders Bitcoin and Ethereum traded the biggest hits, with $5.36 billion worth of long BTC positions wiped out and $3.85 billion worth of long Ethereum positions wiped out.

Although Bitcoin looks bad, Ethereum looks even worse. While Bitcoin is only down 10% from its record high in US dollars, Ethereum is down 21%. It is now trading near $3,900. If it breaks the support around $3,350, a quick move down to $1,500 represents a real risk. Get out now!

– Peter Schiff (@PeterSchiff) October 10, 2025

Mimi coin sector hammered

The meme sector was among the hardest hit with its market cap falling nearly 20% to $57.08 billion. Among the top 10 meme coins, Dojoyfat (WIF) is down 28%, Floki is down 22%, and Trump, Punk, and Pepe are all down more than 21%.

Among the subcategories measured by CoinMarketCap, Chinese-themed memes fell by 39% while AI-themed memes fell by almost 30%.

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