Trump’s 100% tariff on China triggers a crypto market crash, with nearly $7 billion in liquidations and major price drops for Bitcoin and Ethereum.
The crypto market is experiencing sharp declines following President Donald Trump’s announcement of a 100% tariff on Chinese imports.
This decision has led to a fresh wave of sell-offs, triggering significant drops in major cryptocurrencies, including Bitcoin, Ethereum, and Solana. The tariff announcement has heightened market fears, with nearly $7 billion worth of crypto positions being liquidated within a short period.
Trump’s Tariff Announcement Triggers Crypto Market Panic
President Trump confirmed that the U.S. would impose a 100% tariff on Chinese imports, effective November 1, 2025. The announcement came in response to China’s new export restrictions, which Trump labeled as “extraordinarily hostile” and “a moral disgrace.”
The tariff is expected to cover nearly all Chinese-made goods, with additional export controls on critical software. As the news spread, global markets, including the cryptocurrency sector, reacted with volatility.
— Rapid Response 47 (@RapidResponse47) October 10, 2025
Trump’s statement outlined how China’s actions would impact both trade and international relations. This has led to increased uncertainty among investors, with many turning to liquidate their positions as the risk of further economic instability grows.
Crypto Market Experiences Major Liquidations
The crypto market reacted quickly to the tariff news. According to Coinglass, nearly $7 billion worth of crypto positions were liquidated within one hour. Most of these liquidations came from long positions, with $5.67 billion wiped out.
Short positions accounted for $1.3 billion of the total liquidations. This level of market activity caused considerable stress on exchanges, with Binance reporting system overloads due to the high trading volume.
The rapid liquidation highlighted how sensitive the crypto market is to global economic news. The volatility was not limited to just one sector, as traders scrambled to react to the news. Major cryptocurrencies, including Bitcoin and Ethereum, saw steep declines in their prices.
Bitcoin’s price briefly dropped to approximately $109,897, while Ethereum fell below $3,900.
Exchange Systems Strain Under High Trading Volume
In the aftermath of the tariff announcement, trading volume surged across multiple exchanges. Binance, one of the largest crypto exchanges, experienced significant strain on its systems.
The platform posted an update acknowledging the system delays and display issues. Despite the technical challenges, Binance assured its users that funds were safe. “Funds are SAFU,” the exchange tweeted, reassuring traders that their assets were secure despite the ongoing disruptions.
🚨 Due to heavy market activity, our systems are under high load. Some users may experience intermittent delays or display issues.
We’re actively monitoring the situation and working to resolve it. Funds are SAFU.
Thank you for your patience!
— Binance (@binance) October 10, 2025
As the market continues to react to the tariff news, it remains to be seen how long the impact will last. However, the sharp declines in cryptocurrency prices underscore the sensitivity of digital assets to broader geopolitical tensions.
Source: https://www.livebitcoinnews.com/crypto-news-heres-why-the-crypto-market-is-crashing/