Crypto Market Faces Record Liquidation After Trump’s Tariff Shock

In partnership with

🚨 Key Takeaways:

• Over $19 billion in crypto positions were liquidated in just 24 hours — marking the largest single-day wipeout in history.

• The sell-off was triggered by President Trump’s surprise announcement of a 100% tariff on critical software and tech imports from China.

• Bitcoin briefly fell below $78,000, while Ethereum, Solana, and XRP each dropped between 6% and 12%.

• Analysts warn that the move could spark a broader risk-off sentiment in global markets, echoing the 2018 trade war turmoil.

💥 Crypto Market Faces Record Liquidation After Trump’s Tariff Shock

The cryptocurrency market was thrown into chaos on Friday after President Donald Trump announced a sweeping 100% tariff on all critical software imports from China — a move that caught global markets off guard.

The result?
More than $19 billion in crypto long positions were liquidated in less than 24 hours, according to data from Coinglass — the largest liquidation event the crypto industry has ever witnessed.

Bitcoin plunged from above $83,000 to below $78,000 within hours before recovering slightly, while Ethereum (ETH) dropped to around $2,520. Altcoins such as Solana (SOL) and XRP experienced double-digit losses, with panic selling across major exchanges.

📉 What Triggered the Panic

The tariffs announced by Trump target software, semiconductors, and AI infrastructure — all sectors closely tied to blockchain and crypto technology.
Traders interpreted the move as a sign of heightened U.S.–China tensions, sparking fears of a new trade war that could disrupt supply chains for crypto mining equipment, chips, and data centers.

Market analyst Katie Stockton of Fairlead Strategies said:

🔍 Market Outlook: Short-Term Pain, Long-Term Opportunity?

Despite the sell-off, some macro strategists see a potential silver lining. Historically, major liquidation events have often preceded market bottoms, clearing excess leverage and resetting open interest.

Institutional players could take advantage of the downturn, especially if monetary policy continues to lean dovish.
Several traders also note that Bitcoin’s on-chain data still shows accumulation by large holders, suggesting long-term confidence remains intact.

⚖️ The Bigger Picture

The tariff escalation could ripple far beyond crypto — affecting global liquidity, investor sentiment, and even digital asset infrastructure if Chinese hardware suppliers are targeted.
Meanwhile, policymakers in both Washington and Beijing have yet to respond formally, leaving markets bracing for further volatility in the coming days.

🧠 Bottom Line

The record $19 billion liquidation underscores how sensitive crypto remains to macro shocks.
While short-term volatility may persist, many analysts believe that once the dust settles, stronger hands will emerge, setting the stage for the next wave of accumulation.

Sources:

• Economic Times

• Reuters

• Coinglass Data

Business news doesn’t have to be boring

Morning Brew makes business news way more enjoyable—and way easier to understand. The free newsletter breaks down the latest in business, tech, and finance with smart insights, bold takes, and a tone that actually makes you want to keep reading.

No jargon, no drawn-out analysis, no snooze-fests. Just the stuff you need to know, delivered with a little personality.

Over 4 million people start their day with Morning Brew, and once you try it, you’ll see why.

Plus, it takes just 15 seconds to subscribe—so why not give it a shot?

Check it out