The cryptocurrency market faced a dramatic downturn as over $19 billion in leveraged positions were liquidated within just 24 hours, according to data from Bloomberg.
The crash was triggered by Donald Trump’s unexpected declaration of 100% tariffs on Chinese imports, sparking panic across digital asset markets. Within the first hour of the announcement, more than $7 billion in crypto holdings were wiped out.
The shock announcement sent Bitcoin into a sharp nosedive, pulling down major altcoins like Ethereum, XRP, BNB, and Solana as the sell-off rapidly gained momentum.
In total, over 1.6 million traders were liquidated, making this one of the most significant mass liquidations in the history of crypto trading.
Market analysts suggest the event is a clear reminder of how vulnerable digital assets remain to geopolitical tensions and policy decisions, particularly from the United States. Sudden political moves can cause widespread ripple effects, with leveraged positions especially at risk.
Some observers view this as a healthy correction after a period of overheated trading activity. However, others warn that ongoing volatility could undermine investor confidence, especially among new and unseasoned participants who may not have the risk tolerance to withstand such shocks.
As the dust settles, the spotlight is once again on how external forces — far beyond blockchain fundamentals — can dramatically shape the trajectory of the crypto market.