Crypto Market Experiences Historic Crash Amid U.S. Tariff Announcement
- Donald Trump’s tariff announcement caused panic in crypto markets.
- Over $20 billion in crypto liquidations occurred swiftly.
- BTC and altcoins experienced drastic value declines.
On October 11, 2025, the crypto market experienced a historic crash following U.S. President Donald Trump’s announcement of 100% tariffs on Chinese technology imports, causing widespread liquidations.
This event highlighted vulnerabilities in crypto markets, particularly for leveraged participants, due to geopolitical tensions impacting liquidity and causing systemic risk.
On October 11, 2025, Donald Trump announced a 100% tariff on Chinese tech imports, triggering one of the most significant crashes in crypto market history.
This announcement led to global market panic, a rapid deleveraging in crypto assets, and significant market volatility, with major cryptocurrencies experiencing sharp declines.
U.S. Tariff Causes Global Market Panic
The historic crash began when U.S. President Donald Trump announced 100% tariffs on Chinese technology imports. This decision sparked global panic and resulted in a wave of forced liquidations across major exchanges.
Arthur Hayes, co-founder of BitMEX, highlighted that liquidity providers were forced to prioritize Tier 0 and Tier 1 assets. This contributed to the market’s instability and liquidity challenges.
Crypto Market Loses Up to $20 Billion Overnight
The immediate market reaction saw more than $12 to $20 billion in cryptocurrency liquidations. Bitcoin’s value plunged below $105,000, impacting investors globally and leading to substantial financial losses.
The crash also affected the U.S. stock market, leading to a loss of approximately $2.5 trillion in market capitalization. Institutional investors using leveraged trades were particularly affected.
2025 Crash Exceeds Black Wednesday’s Scale
This event is compared to 2021’s Black Wednesday, but the 2025 crash exceeded previous instances in scale due to its geopolitical trigger and speed. Experts noted severe systemic risks in collateral and leverage frameworks.
Experts predict this crash could lead to intensified regulatory scrutiny and potential reforms in market liquidity management, aiming to prevent repetition of similar scenarios. Market resilience faces significant challenges moving forward.
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