"COVID-level nuclear bomb": Trump's 100% tariff threat against China triggers a flash crash in the crypto market, with over $19 billion in Get Liquidated in 24 hours.

Affected by the announcement made by U.S. President Trump on Friday evening to impose an additional 100% tariff on Chinese goods, the cryptocurrency market experienced a “flash crash”, with prices plummeting sharply. Bitcoin (BTC) fell by more than 12% in just 24 hours, dropping below the $110,000 mark, while Ethereum (ETH) plummeted by 16%, falling below $3,700. The altcoin market suffered heavy losses, with major tokens like Solana and XRP experiencing declines of 20%-30%, and ADA and AAVE seeing drops of up to 40%. According to CoinGlass data, this market crash led to over $19 billion in long positions being forcibly liquidated, and analysts likened its severity to the market crash triggered by the COVID-19 pandemic in March 2020.

Sudden Tariff Threat Triggers Chain Sell-off

The latest escalation of tensions in China-US trade has become the direct trigger for the recent big dump in the crypto market.

· Tariff Increase: After the traditional market closed, Trump announced on Friday afternoon via Truth Social that in response to China's export controls on rare earth metals, the United States will impose an additional 100% tariff on Chinese goods starting November 1, and will implement export controls on all critical software.

· Price plunge: After Trump's post, the price of Bitcoin immediately fell by $3,000, dropping directly below $110,000 from around $117,000, which had been weak earlier in the day due to tariff threats.

Mainstream coins plummet:

· Bitcoin (BTC): fell 12% in the last 24 hours, reaching $111,601.46.

· Ethereum (ETH): fell by 16%, dropping below $3,700, reported at $3,763.17.

· Other major alts: XRP, Solana (SOL) and DOGE fell between 20% and 30%. ADA, Chainlink (LINK) and Aave (AAVE) saw declines of up to 40%.

Market Hell: Over 19 Billion Dollars in Positions Liquidated

(Source: CoinGlass)

This big dump is the largest wave of Forced Liquidation since the beginning of this year, highlighting the high leverage risk in the market.

· Record-breaking liquidation scale: According to the latest data update from CoinGlass, the total amount of liquidations across the network reached as high as 19.25 billion USD in the past 24 hours, with long positions facing forced liquidation amounting to 16.87 billion USD, and short positions facing forced liquidation amounting to 2.47 billion USD.

· BTC forced liquidation: 5.35 billion USD

· ETH Forced Liquidation: 4.4 billion dollars

· SOL Forced Liquidation: 2 billion USD

· HYPE Forced Liquidation: 890 million USD

· The chain reaction of leverage: Massive forced liquidations are caused by long positions betting on rising prices, and the sharp market drop triggered automatic sell orders, exacerbating the price fall, resulting in a “liquidation-driven crash.”

Analyst Perspective: Historic “Washout” and Emotional Low

Veterans in the Crypto Assets industry are shocked by the severity of this price big dump and regard it as a historic market “washout.”

· “COVID level” big dump: Well-known trader Bob Loukas compared this crash to “Covid level nukes,” but also added that it could be a great candidate for the “largest washout action.”

· Over-leveraging triggered: Ram Ahluwalia, founder of investment firm Lumida Wealth, believes that the combination of “Trump news” and the market's “overbought” conditions led to this sharp fall.

· Alts have been hit hard: Well-known trader Pentoshi stated that this drop is one of the “top three” big dumps in history, noting that the decline of alts is as severe as during the COVID flash crash period. Hedge fund Split Capital founder Zaheer Ebtikar summarized: “Altcoin assets have been completely liquidated, with prices reaching levels not seen in over a year. This is a comprehensive leverage reset and market misalignment.”

Conclusion

Trump's surprise announcement of tariffs on China has caused a huge impact on the already weak crypto market, triggering a historic high leverage liquidation wave. This market flash crash once again indicates that in the face of global macroeconomic and geopolitical risks, crypto assets (especially highly volatile alts) still struggle to serve as reliable safe-haven assets. Although painful, many analysts believe that such a large-scale “washout” or “leverage reset” helps to clear excessive speculation in the market, laying the foundation for long-term healthy development.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.