Summary of this article
Trump’s 100% China tariff sparks $19 billion crypto crash.
Bitcoin, Ethereum plunge sharply amid record market liquidations worldwide.
Experts predict recovery and long-term opportunities despite short-term volatility.
U.S. President Donald Trump has announced a significant additional 100 per cent tariff on all Chinese goods, effective November 1. The announcement triggered a historic sell-off in the cryptocurrency market on Friday late at night, with over $19 billion liquidated.
Major digital assets, such as Bitcoin and Ethereum, fell sharply, which highlights the cryptocurrency market's susceptibility to geopolitical happenings and macroeconomic policy. Data tracker Coinglass described the event as the largest liquidation in crypto history. Within 24 hours, around 1.6 million traders were liquidated, with total liquidations amounting to $19.13 billion.
According to CoinMarketCap, the total cryptocurrency market capitalisation has fallen to $3.7 trillion from a record $4 trillion seen last week. Trading volume in the past 24 hours dropped to $234.39 billion, down 52.01 per cent.
Major Cryptocurrencies See Sharp Decline
Bitcoin, which reached an all-time high of $126,000 a few days ago, dipped from $122,509.66 on Friday morning to around $104,000 late in the day following Trump's announcement. As of the time of writing, it has recovered slightly to $111,804.64.
On Friday's closing, Ethereum fell to $3,843.01 from $4,395, marking a decline of around 12.6 per cent in response to the market turmoil. Other major altcoins also experienced significant volatility. Solana, which was trading at $220 on Friday before the tariff announcement, fell to around $182. XRP fell drastically from $2.80 on Friday to $1.52 at the close, but it has since recovered to $2.38. These movements reflect widespread market turbulence as investors reacted to the announcement of U.S. tariffs on China and new software export controls.
Expert Insights on the Crypto Market Decline
Brian Strugats, head trader at Multicoin Capital, told Bloomberg, 'The focus now turns to counterparty exposure and whether this triggers broader market contagion.' He added that some estimates put total liquidations above $30 billion.
Even after the recent decline, Edul Patel, CEO of Mudrex, said the crypto market is reacting strongly to Trump's announcement of a 100 per cent tariff on China, with total capitalisation at $3.74 trillion. Bitcoin briefly dipped to $102,000 before recovering to $113,000, and historically, October corrections have often been followed by relief rallies of up to 21 per cent. Patel suggested that investors could use these declines to gradually build long-term positions in strong assets like Bitcoin and Ethereum ahead of the next bull cycle.
