The cryptocurrency market plunged after US President Donald Trump announced plans to impose additional 100% tariffs on China and restrict software exports. According to Coinglass, traders’ positions worth more than $7 billion were liquidated in less than an hour.
Cryptocurrency Market Crashed After Trump’s China Statements: $7 Billion Liquidated in Hour
Bitcoin lost over 12% shortly after Trump’s statement was published on his platform, Truth Social. The largest cryptocurrency, which reached an all-time high of over $125,000 earlier in the week, was trading at around $113,000 by Friday evening in New York.
The decline began on Friday: approximately $10 billion was liquidated in the last 24 hours, marking the largest sell-off since early April, according to Coinglass analysts.
Less liquid tokens suffered the most. XRP, the popular memecoin Dogecoin (DOGE), and Cardano (ADA) have fallen by approximately 19%, 27%, and 25%, respectively, in 24 hours.
“Friday effectively marked the beginning of a new trade war between the US and China, triggering a wave of market uncertainty and a collapse in risk assets,” said Ravi Doshi, co-head of markets at FalconX. He noted that there was “abnormal demand for downside hedging instruments” throughout the day.
The harsher rhetoric between Washington and Beijing sent shockwaves through global markets, sending stocks, oil, and cryptocurrencies tumbling, while investors flocked to government bonds and gold, viewing them as safer assets.
Spot Ethereum ETFs recorded their largest outflow on record, with investors pulling $795.6 million, according to SoSoValue. This surpasses the previous record of $787.7 million set in early September. The biggest losses came from BlackRock’s ETHA fund (–$200 million) and the Fidelity Ethereum Fund (–$362 million).
The heaviest withdrawals occurred on Thursday and Friday, when investors pulled roughly $250 million each day. Analysts link the sell-off to a mix of technical corrections, macroeconomic uncertainty, and a wave of market liquidations.
