Historic $19B Crypto Liquidation Triggered by Trump’s Tariff Announcement

The cryptocurrency market experienced a significant decline following U.S. President Donald Trump's threat to impose a 100% tariff on imports from China, according to data analyzed by CoinGlass and Yahoo Finance. On Friday, October 10, 2025, the total crypto market value dropped from $4.1 trillion to $3.6 trillion, marking the largest liquidation in history, totaling approximately $19.13 billion.

The main driver was a massive sell-off by investors trading with leverage, a risky practice that involves borrowing funds to increase market exposure. The event highlighted the high volatility of cryptocurrencies in situations of economic and geopolitical uncertainty.

Following announcements of progress in trade negotiations between the U.S. and China, the crypto market partially recovered, gaining between 3% and 5% by October 27. Analysts warn that such fluctuations may continue, and investors should manage risks carefully and remain aware of the volatile nature of cryptocurrencies.