More than 1.6 million traders have been liquidated in the past 24 hours, with more than $7 billion worth of positions sold in less than an hour, according to Coinglass data. The total could be even higher, as exchanges such as Binance Holdings Ltd. report liquidation orders only once per second.
“The focus now turns to counterparty exposure and whether this is causing broader market contagion,” said Brian Strugats, chief trader at Multicoin Capital. Some estimates suggest the total number of liquidations could exceed $30 billion.Ethereum, the world’s second-largest cryptocurrency, fell 5.8% to $3,637, while other major tokens also suffered steep losses. Binance Coin fell 6.6% to $1,094.09,The sell-off follows Trump’s post on Truth Social, in which he accused Beijing of taking an “extremely aggressive position on trade” through export restrictions on rare earth minerals – crucial inputs for global manufacturing and technology production. “Based on the fact that China has taken this unprecedented position… the United States will impose a 100% tariff on China, on top of any tariff it currently pays,” Trump wrote.
The escalation also sent shockwaves through traditional markets, with the S&P 500 Index falling more than 2% on Friday. Edul Patel, CEO of Mudrex, noted that the crypto market retains a bullish undertone despite the sharp corrections. “The crypto market is reacting strongly to Trump’s announcement of a 100% tariff on China, with a total market cap of $3.74 trillion. Bitcoin briefly tested the $102,000 level before recovering to the $113,000 range. Historically, October corrections (as seen between 2017 and 2022) have often been followed by relief rallies up to 21%. Despite the Short-term selling pressure continues to keep overall sentiment bullish,” Patel said. Patel added that factors such as capital rotation from overbought gold and the expected adoption of multiple US spot altcoin ETFs could inject new liquidity into the market. “For investors, this phase creates an attractive entry opportunity. These declines can be used to gradually build long-term positions, especially in fundamentally strong assets such as Bitcoin and Ethereum, ahead of the next phase of the bull cycle.”
Friday’s plunge marks the largest single-day liquidation in crypto history, highlighting digital assets’ susceptibility to geopolitical flashpoints. Traders and investors are now watching closely for signs of broader market contagion as the US-China trade war intensifies.
Also read | Tata Motors demerger: Will it deliver value or more volatility for investors next week?
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
as a reliable and trusted news source#Crypto #faces #historic #billion #drop #Trump #imposes #tariffs #Chinese #tech