Record-breaking meltdown hits crypto market as Trump’s China tariffs trigger $19 billion wipeout
The cryptocurrency market witnessed unprecedented losses on Saturday, with over $19 billion wiped out in a single day — what Coinglass described as “the largest liquidation event in crypto history.”
The crash followed US President Donald Trump’s announcement of 100% tariffs on Chinese goods and new export restrictions on software, sparking panic across global markets.
According to The Independent, Bitcoin and Ethereum were hit hardest as traders rushed to offload risky assets amid renewed fears of a trade war. Many investors shifted funds into stablecoins or safer instruments.
In the matter of 24 hours, bets worth over $19 billion have been wiped out, after Trump’s post on X triggering a crash of more than 12 percent in Bitcoin.
Bitcoin and Ethereum nosedive after Trump’s announcement
Trump’s tariff declaration, made on X (formerly Twitter), sent shockwaves through digital assets.
Bloomberg reported that Bitcoin, which had touched a record high above $125,000 earlier in the week, plunged more than 12% and slipped below $113,000 by Saturday morning in London.
Ethereum also suffered heavy losses as traders exited leveraged positions, leading to record liquidations.
Data from Coinglass showed that over 1.6 million traders were liquidated within 24 hours, with more than $7 billion worth of positions erased in less than an hour on Friday, reported India Today.
The data tracker added that total losses could be far higher, as major exchanges like Binance report only one liquidation per second.
Binance outage deepens the chaos
Adding to the turmoil, Binance — the world’s largest crypto exchange — faced user outrage after widespread reports of frozen accounts, failed stop-loss orders, and flash crashes that briefly sent some smaller coins to near zero, according to the report.
Tokens such as Enjin (ENJ) and Cosmos (ATOM) momentarily crashed to $0.0000 and $0.001, respectively, before bouncing back. Binance attributed the disruption to “heavy market activity” and assured users their “funds are SAFU.”
However, critics accused the exchange of worsening the selloff and profiting from the surge in liquidations.
Similar issues were reported on Coinbase and Robinhood, further fuelling frustration among traders.
Analysts warn of wider contagion
Market observers warned that the liquidation wave could have far-reaching effects.
Brian Strugats, head trader at Multicoin Capital, said attention was now turning to “counterparty exposure and whether this triggers broader market contagion.” Some analysts estimated total liquidations could exceed $30 billion, according to the India Today report.
Caroline Mauron, co-founder of Orbit Markets, cautioned that Bitcoin’s next major support lies at $100,000, noting that a drop below this threshold could mark “the end of the past three-year bull cycle.”
Data from Deribit showed heavy concentration of put options at the $110,000 and $100,000 levels, indicating growing bearish sentiment, the report added.
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