Bitcoin suffered a sharp 8.4% decline to $104,782 on Saturday, leading to a $19 billion loss in the cryptocurrency market triggered by US President Donald Trump’s escalation of the US-China trade war. Trump announced 100% tariffs on Chinese technology exports and strict export controls on critical software, accusing Beijing of aggressive trade tactics through restrictions on rare earth minerals. The news, published on Truth Social, sent shock waves through global financial markets, with the S&P 500 index sliding more than 2% on Friday. The crypto market has seen unprecedented disruption, with Coinglass reporting that more than 1.6 million traders were liquidated in 24 hours, including $7 billion in positions sold in less than an hour. Brian Strugats, chief trader at Multicoin Capital, warned that total liquidations could exceed $30 billion, raising concerns about counterparty exposure and potential broader market contagion.
Other major cryptocurrencies were hit hard: Ethereum fell 5.8% to $3,637, Binance Coin fell 6.6% to $1,094.09, and XRP fell 22.85% to $2.33, reducing its market cap by 16.31% to $140.19 billion. Tether saw a slight decline of 0.1% to $1. Despite the chaos, Edul Patel, CEO of Mudrex, suggested that the market retained a bullish outlook. “Bitcoin briefly tested $102,000 before returning to $113,000. Historical October corrections often precede relief rallies of up to 21%,” Patel noted, pointing to potential liquidity resulting from the rotation of capital out of gold and early approvals of spot altcoin ETFs in the United States. He views the decline as a buying opportunity for long-term investors in assets like Bitcoin and Ethereum.The October 10 plunge marked the largest single-day selloff in crypto history, highlighting the vulnerability of digital assets to geopolitical tensions. As the U.S.-China trade war intensifies, investors are bracing for greater volatility and watching for signs of a broader fallout across markets.
