Crypto Market Hit by Record $19 Billion Crash Following Trump’s New Tariff Announcement
The global cryptocurrency market faced one of its most dramatic single-day collapses in history after former U.S. President Donald Trump announced a 100 percent tariff on Chinese technology imports. The sudden decision sent shockwaves through financial markets, wiping out an estimated $19 billion in crypto value within hours.
Bitcoin led the fall, plunging below the $105,000 mark, while major altcoins like Ethereum, Solana, and Dogecoin followed with steep double-digit losses. Analysts say the panic was fueled by fears of a renewed trade war between the world’s two largest economies, which could disrupt global supply chains and weaken investor confidence.
Market data shows that the sharp decline triggered massive liquidations across exchanges, particularly among leveraged traders who had bet on rising prices. Within minutes, billions in long positions were erased as prices tumbled and automated sell-offs accelerated the fall.
Experts describe the crash as a “market reset,” comparing its scale to the 2022 Terra collapse and the 2023 FTX aftermath, but noting that this time, macroeconomic policy rather than internal industry scandal sparked the chaos.
The global cryptocurrency market faced one of its most dramatic single-day collapses in history after former U.S. President Donald Trump announced a 100 percent tariff on Chinese technology imports. The sudden decision sent shockwaves through financial markets, wiping out an estimated $19 billion in crypto value within hours.
Bitcoin led the fall, plunging below the $105,000 mark, while major altcoins like Ethereum, Solana, and Dogecoin followed with steep double-digit losses. Analysts say the panic was fueled by fears of a renewed trade war between the world’s two largest economies, which could disrupt global supply chains and weaken investor confidence.
Market data shows that the sharp decline triggered massive liquidations across exchanges, particularly among leveraged traders who had bet on rising prices. Within minutes, billions in long positions were erased as prices tumbled and automated sell-offs accelerated the fall. Experts describe the crash as a “market reset,” comparing its scale to the 2022 Terra collapse and the 2023 FTX aftermath, but noting that this time, macroeconomic policy rather than internal industry scandal sparked the chaos.
The crash came shortly after Trump announced sweeping new trade measures targeting Chinese technology products. The former president ordered a 100% import tariff on various Chinese tech goods, citing the need to protect American innovation and jobs. The move, however, rattled global investors. Many saw it as the start of a renewed U.S.–China trade conflict, echoing the market tensions that characterized his previous administration. The crypto sector, which is highly sensitive to global policy shifts and investor sentiment, was hit almost immediately.
Data from multiple trading platforms revealed that more than $19 billion in crypto positions were liquidated in less than 24 hours. This includes both institutional and retail traders caught off guard by the rapid market reversal. Bitcoin’s decline below critical support levels triggered automatic margin calls, forcing mass sell-offs that amplified the market crash. Ethereum, Binance Coin, and Solana also recorded some of their sharpest hourly declines in months.
Analysts suggest that the scale of the crash was worsened by over-leveraged trading and automated bots reacting to negative market sentiment. According to several market observers, many investors had been riding a long bullish streak, leaving them vulnerable to sudden shocks. One analyst described the event as a “perfect storm” of policy panic and market overconfidence, emphasizing that the announcement triggered both fear and forced selling simultaneously.
Despite the chaos, some experts believe this event could help stabilize the crypto space in the long term. By clearing out risky leverage positions and speculative trades, the market might find a more sustainable base for future growth. However, in the short term, investors are expected to remain cautious. The uncertainty surrounding U.S.–China trade relations, coupled with global inflation concerns, could keep digital assets under pressure for weeks.
Global reactions to the crash were immediate. Major investors and trading firms called for calm, urging traders to avoid panic selling. Some industry analysts believe the market could recover once investors adjust to the new trade landscape, while others warn that volatility may persist until there’s more clarity on U.S.–China relations.
For now, most traders are watching closely as Bitcoin and other major assets attempt to stabilize. Despite the record losses, many see this as another reminder of crypto’s resilience—and its deep connection to global politics and economic policy.
Source: Economictimes Edited by Sonarx