Donald Trump’s surprise announcement of a 100% tariff on Chinese imports has triggered a staggering $19 billion in cryptocurrency liquidations since. Experts fear the total redemptions could exceed $30 billion, after leveraged derivates are accounted for.
With cryptocurrencies typically used as a speculative asset, such a collapse is being called a ‘Black Swan’ event- a rare and unpredictable collapse that can risk spilling into traditional finance. According to crypto exchange Coinglass, almost $19.36 billion of cryptocurrencies have been redeemed, including $5.39billion worth of Bitcoin and $4.44 billion of Ethereum, the two most well-known cryptocurrencies. Overall, the total market capitalisation of cryptocurrencies fell from $4.30 trillion to $3.74 trillion, wiping out almost $560 billion in investor wealth in a day.
According to leading crypto investors, the market crash was triggered by a cascade of reasons- Trump’s tariffs were mostly the trigger that lead to everything. It started with an increase in crypto future liquidations, which caused drops in asset prices and eventually led to liquidations.
MARKET CRASH
What happened last night and why?
Everyone already knows about the 100% tariffs on China.
But what actually triggered the selloff in crypto?
It started with a cascade of futures liquidations ==> which caused sharp drops in asset prices ==> triggering liquidations… pic.twitter.com/inzRRcrxwT
— onchainschool.pro (@how2onchain) October 11, 2025
Global exchanges like Biance, Bybit and KKX are reporting widespread auto-liquidations and margin call cascades, as traders across Asia and Europe have faced instant losses. Social media has been swamped with knowledge of such losses, fuelling debates about the legitimacy of the cryptocurrency ecosystem.
Though there is no certainty of what could happen in the near term, this wipeout could threaten the legitimacy of the cryptocurrency market, which Donald Trump himself had endorsed earlier this year with laws allowing for clearer regulations and oversight.
Whatever the reason, the financial markets will be watching these developments nervously, as a spillover could impact the global economy in ways no one has yet predicted.
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