Crypto Plunges 10%, Liquidations Hit 19 Billion Thanks to Trump’s China Tariffs

The crypto market plunged more than 10% after US President Donald Trump announced 100% tariffs on Chinese exports starting November 1, triggering $19 billion in liquidations.

Solana slid 16%, XRP 14%, Ethereum 12%, Bitcoin 9% and Dogecoin 22% as traders rushed to unwind their leveraged positions.

Data from CoinGlass showed that most of the $19 billion in liquidations came from long positions as markets turned away from risk. One trader opined that it was “probably the largest liquidation event, in dollar terms, in crypto history.”

Trump’s actions came in response to what he called China’s “extraordinarily aggressive” stance after it unveiled drastic export controls on rare earths that are crucial for products ranging from cars to smartphones.

The announcement sent investors fleeing risky assets as the Crypto Fear & Greed Index collapsed from a “greed” level of 64 to a “fear” level of 27 in a single day as markets braced for an escalating showdown between the world’s two largest economies.

Crypto Fear and Greed Index (Source: Alternative.me)

“We have just learned that China has taken an extraordinarily aggressive stance on trade by sending an extremely hostile letter to the world, declaring that it will, beginning November 1, 2025, impose large-scale export controls on virtually every product it makes, and even some that are not made by it,” Trump wrote in a message on Social truth.

He added that the United States also impose export controls on “all critical software.” Trump initially indicated he would walk away from a meeting with Chinese President Xi Jinping. However, he later said the meeting had not been canceled, but that he was unsure if “we’re going to have it.”

The S&P 500 stock index fell 2.7%, the Nasdaq 100 fell 3.5% and the price of oil fell to its lowest level since May. Gold rose nearly 1.5% as investors sought safe haven assets.

Fears of renewed trade war prompt investors to shy away from risk

Data from CoinGlass watch that $16.81 billion in liquidations came from long positions, he is betting that cryptocurrency prices would rise. The remaining $2.50 billion was wiped out of short positions.

Trades for crypto market leaders Bitcoin and Ethereum were hit the hardest, with $5.36 billion in long positions wiped from long BTC positions and $3.85 billion wiped from long ETH positions.

As bad as Bitcoin looks, Ethereum looks even worse. While Bitcoin is only down about 10% from its all-time high price in US dollar terms, Ether is down 21%. It is now trading near $3,900. If it breaks the support around $3,350, a quick decline to $1,500 is a real risk. Get out now!

-Peter Schiff (@PeterSchiff) October 10, 2025

Sector Meme Hammered Corner

The meme coin industry was among the hardest hit, with its market capitalization plunging nearly 20% to $57.08 billion. Among the 10 largest coins, Dogwifhat (WIF) fell 28%, Floki plunged 22%, and Officials Trump, Bonk and Pepe all fell more than 21%.

Among subcategories measured by CoinMarketCap, Chinese-themed coins fell 39%, while AI-themed memes fell almost 30%.

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