Finance

Trump’s Tariff Threats Trigger Crypto Bloodbath: How Bitcoin and Altcoins Plunged

Trump’s tariff threats triggered a crypto “bloodbath.” $19B in positions liquidated, Bitcoin fell sharply.

October 11, 2025, 12:02 PM

As the fireflies representing Red Arrows plummet toward a digital currency symbol, they foreshadow a downturn in the market. By MDL.

Executive Summary

Global cryptocurrency markets experienced a record “bloodbath” with over $19 billion in positions liquidated in 24 hours, primarily due to President Donald Trump’s escalating threats of new trade tariffs on China.

Bitcoin plunged from over $121,000 to below $106,000, while altcoins like Ethereum, Dogecoin, and Cardano suffered even steeper losses, with some top 100 coins seeing over 50% declines.

The more than $19 billion in liquidations marked the largest single liquidation event in crypto history, significantly surpassing previous black swan events like the Covid-19 reaction or the FTX collapse.

The Story So Far

The recent record-breaking “bloodbath” in global cryptocurrency markets, which saw over $19 billion in liquidations, was primarily triggered by President Trump’s escalating threats of “massive” new trade tariffs on China, amplified through his social media posts. This unprecedented sell-off highlights a heightened risk appetite and significant growth within crypto markets in recent years, making them particularly susceptible to major external economic and political announcements.

Why This Matters

President Trump’s escalating trade tariff threats triggered an unprecedented “bloodbath” in global cryptocurrency markets, resulting in over $19 billion in liquidations – a record far surpassing previous “black swan” events. This incident starkly illustrates the crypto market’s extreme sensitivity to geopolitical and macroeconomic uncertainties, particularly from major global economic players, and signals continued volatility as leveraged positions remain highly vulnerable to external shocks.

Who Thinks What?

Global cryptocurrency markets experienced a record-breaking “bloodbath” with over $19 billion in liquidations, primarily triggered by President Trump’s escalating threats of new trade tariffs on China, and anticipate continued volatility.

President Donald Trump’s amplified threats of “massive” new trade tariffs on China directly sparked a widespread “freefall” across cryptocurrency markets.

Industry experts observed that the scale of Friday’s liquidations was unprecedented, far exceeding previous “black swan” events, underscoring significant growth and a heightened risk appetite within crypto markets.

Global cryptocurrency markets experienced a record-breaking “bloodbath” on Friday, with over $19 billion in crypto positions liquidated within 24 hours, largely triggered by President Donald Trump’s escalating threats of “massive” new trade tariffs on China. The unprecedented sell-off saw Bitcoin plunge from above $121,000 to below $106,000, while altcoins suffered even steeper losses.

Trump’s Tariff Threats Spark Market Sell-Off

The market downturn began Friday morning after President Trump issued a threat regarding new trade tariffs on China, causing initial dips in both crypto and traditional stock markets. The declines rapidly accelerated later in the afternoon when Trump amplified his threats in a follow-up post on Truth Social, leading to a widespread crypto freefall.

Bitcoin, which had been trading above $121,000 earlier in the day, ultimately dipped below $106,000. Altcoins were impacted even more severely, with Ethereum dropping from $4,300 to a multi-month low under $3,600. Assets like Dogecoin and Cardano briefly recorded 40% daily dips before regaining some ground, while some top 100 coins, including Story (IP) and Worldcoin (WORLD), saw over 50% declines in a single hour.

Record Liquidations and Market Context

The market carnage resulted in more than $19 billion worth of crypto liquidations over 24 hours, according to data from CoinGlass, marking the largest single liquidation event in crypto history. The vast majority of these were long positions, or bets on price increases, accounting for nearly $17 billion.

Industry experts noted the scale of Friday’s liquidations far exceeded previous “black swan” events. For context, approximately $1.2 billion was liquidated during the Covid-19 market reaction in 2020, and about $1.6 billion during the FTX exchange collapse in 2022. Friday’s total was more than ten times these figures, underscoring significant growth and a heightened risk appetite within crypto markets in recent years.

CoinGlass indicated that the reported $19.13 billion liquidation total might be conservative, stating, “The actual total is likely much higher — Binance only reports one liquidation order per second.”

Ongoing Volatility Expected

Following Friday’s lows, top assets have shown some recovery but remain significantly below their recent peaks. Bitcoin is currently down nearly 8% on the day, trading just above $112,000, while Ethereum shows a 12% daily loss at $3,816. XRP is down 13% to $2.45, Dogecoin has fallen 24% to $0.19, and Solana is down 18% to $183.

The crypto community anticipates continued volatility, with users on platforms like Myriad predicting a 56% chance that Bitcoin will experience more price declines than gains before the weekend concludes.