The cryptocurrency market suffered its biggest single‑day wipeout on record after former U.S. President Donald Trump announced a 100 % tariff on Chinese imports, sending shockwaves through global finance. Within hours, Bitcoin plunged from a recent all‑time high above $125,000 to a low near $102,000, while Ethereum and major altcoins followed suit, erasing billions in market value. The sudden tariff threat reignited fears of a full‑blown trade war, prompting a rapid “risk‑off” sell‑off across stocks, commodities and digital assets alike .
The price collapse triggered a cascade of forced liquidations as leveraged traders were unable to meet margin calls. Coinglass data shows over $19 billion in leveraged positions were wiped out in just 24 hours—roughly 1.6 million trading accounts—making this the largest liquidation event in crypto history. Roughly $7 billion of that total was erased within the first hour alone, with Bitcoin accounting for about $5.3 billion of the long‑position losses and Ethereum contributing another $4.4 billion .
Market participants reacted to the extreme volatility with a mix of panic and opportunism. Some exchanges, such as Hyperliquid, saw individual liquidations worth hundreds of millions of dollars, while a savvy whale reportedly netted around $190 million by shorting BTC and ETH just before the crash. Analysts warn that the rapid deleveraging could spill over into traditional markets, as collateral values drop and firms scramble to raise cash, potentially amplifying contagion risks .
Despite the short‑term turmoil, institutional interest in crypto remains robust. A State Street survey projects that institutional exposure to digital assets will double by 2028, suggesting larger investors view the dip as a strategic entry point. Looking ahead, the market will closely watch whether Bitcoin can hold key supports around $100,000 and how policymakers respond to the tariff escalation, as these factors will shape the next phase of crypto’s volatile but maturing landscape .
