Bitcoin extended its sharp selloff on Saturday, dropping 8.4% to $104,782, after US President Donald Trump escalated the trade war with China by imposing 100% tariffs on Chinese tech exports and export controls on “any and all critical software.” The announcement triggered a record $19 billion wipeout across the cryptocurrency market, sending major tokens into a tailspin and rattling global financial markets.
Over 1.6 million traders were liquidated in the past 24 hours, with more than $7 billion of positions sold in under an hour, according to Coinglass data. The total could be even higher, as exchanges like Binance Holdings Ltd. report liquidation orders only once per second.
“The focus now turns to counterparty exposure and whether this triggers broader market contagion,” said Brian Strugats, head trader at Multicoin Capital. Some estimates suggest total liquidations could exceed $30 billion.
Ethereum, the world’s second-largest cryptocurrency, fell 5.8% to $3,637, while other major tokens also suffered steep losses. Binance Coin dropped 6.6% to $1,094.09, XRP plunged 22.85% to $2.33, eroding its market cap by 16.31% to $140.19 billion, and Tether edged down 0.1% to $1.
The sell-off follows Trump’s post on Truth Social, in which he accused Beijing of taking an “extraordinarily aggressive position on trade” through export restrictions on rare earth minerals — critical inputs for global manufacturing and technology production. “Based on the fact that China has taken this unprecedented position… the United States will impose a tariff of 100% on China, over and above any tariff that they are currently paying,” Trump wrote.
The escalation sent shockwaves through traditional markets as well, with the S&P 500 Index sliding more than 2% on Friday.
Edul Patel, CEO of Mudrex, noted that despite the sharp corrections, the crypto market retains a bullish undertone. “The crypto market is reacting strongly to Trump’s announcement of a 100% tariff on China, with a total market cap standing at $3.74 trillion. Bitcoin briefly tested $102,000 levels before recovering to the $113,000 range. Historically, October corrections (as seen between 2017 and 2022) have often been followed by relief rallies of up to 21%. Despite the short-term selling pressure, overall sentiment remains bullish,” Patel said.
Patel added that factors such as capital rotation from overbought gold and the anticipated approval of multiple U.S. spot altcoin ETFs could inject fresh liquidity into the market. “For investors, this phase creates an attractive entry opportunity. These declines could be used to gradually build long-term positions, especially in fundamentally strong assets like Bitcoin and Ethereum, ahead of the next leg of the bull cycle.”
Friday’s plunge marks the largest single-day liquidation in crypto history, highlighting the sensitivity of digital assets to geopolitical flashpoints. Traders and investors are now closely watching for signs of broader market contagion as the US-China trade war intensifies.
Also read | Tata Motors demerger: Will it unlock value or more volatility for investors next week?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Over 1.6 million traders were liquidated in the past 24 hours, with more than $7 billion of positions sold in under an hour, according to Coinglass data. The total could be even higher, as exchanges like Binance Holdings Ltd. report liquidation orders only once per second.
“The focus now turns to counterparty exposure and whether this triggers broader market contagion,” said Brian Strugats, head trader at Multicoin Capital. Some estimates suggest total liquidations could exceed $30 billion.
Ethereum, the world’s second-largest cryptocurrency, fell 5.8% to $3,637, while other major tokens also suffered steep losses. Binance Coin dropped 6.6% to $1,094.09, XRP plunged 22.85% to $2.33, eroding its market cap by 16.31% to $140.19 billion, and Tether edged down 0.1% to $1.
The sell-off follows Trump’s post on Truth Social, in which he accused Beijing of taking an “extraordinarily aggressive position on trade” through export restrictions on rare earth minerals — critical inputs for global manufacturing and technology production. “Based on the fact that China has taken this unprecedented position… the United States will impose a tariff of 100% on China, over and above any tariff that they are currently paying,” Trump wrote.
The escalation sent shockwaves through traditional markets as well, with the S&P 500 Index sliding more than 2% on Friday.
Edul Patel, CEO of Mudrex, noted that despite the sharp corrections, the crypto market retains a bullish undertone. “The crypto market is reacting strongly to Trump’s announcement of a 100% tariff on China, with a total market cap standing at $3.74 trillion. Bitcoin briefly tested $102,000 levels before recovering to the $113,000 range. Historically, October corrections (as seen between 2017 and 2022) have often been followed by relief rallies of up to 21%. Despite the short-term selling pressure, overall sentiment remains bullish,” Patel said.
Patel added that factors such as capital rotation from overbought gold and the anticipated approval of multiple U.S. spot altcoin ETFs could inject fresh liquidity into the market. “For investors, this phase creates an attractive entry opportunity. These declines could be used to gradually build long-term positions, especially in fundamentally strong assets like Bitcoin and Ethereum, ahead of the next leg of the bull cycle.”
Friday’s plunge marks the largest single-day liquidation in crypto history, highlighting the sensitivity of digital assets to geopolitical flashpoints. Traders and investors are now closely watching for signs of broader market contagion as the US-China trade war intensifies.
Also read | Tata Motors demerger: Will it unlock value or more volatility for investors next week?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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