Global Crypto Markets Plunge Amid U.S.-China Tariff Shock
Global cryptocurrency markets experienced a historic crash on Friday, erasing over $19 billion in market value. The sharp decline followed U.S. President Donald Trump’s announcement of a 100 percent tariff on Chinese imports, effective November 1. The move, intended to counter China’s export restrictions on rare earth elements, triggered widespread panic across both crypto and traditional markets.
Bitcoin (BTC) led the selloff, dropping to $102,000 on Binance futures and $107,000 on Coinbase — its lowest level in three months. Meanwhile, Ethereum (ETH) fell to $3,500, and Solana (SOL) slipped below $140, with several altcoins and AI tokens plunging by more than 35 percent. According to market data, over $9.4 billion in crypto positions were liquidated within 24 hours, with $7.15 billion lost from leveraged long trades.
Institutional Losses and Exchange Turmoil
The market chaos intensified as whale wallets opened massive short positions ahead of the collapse, earning millions in unrealized gains. Institutional investors, however, suffered severe losses as liquidation events cascaded across major exchanges. Data indicated heightened trading activity around the $100,000 Bitcoin level, amplifying volatility throughout the market.
Further compounding the crisis, Binance — the world’s largest cryptocurrency exchange — faced significant technical issues. Users reported frozen accounts and failed stop-loss orders during the flash crash. Although systems later recovered, trust in major exchanges weakened as accusations of profiteering circulated. Similar disruptions were also observed on Coinbase and Robinhood, deepening investor anxiety.
Global Ripple Effects and Future Outlook
The tariff shock spilled into traditional financial markets as the S&P 500 dropped 2.7 percent and the Dow Jones fell 1.9 percent. Crypto-linked equities, including Coinbase, MARA Holdings, Bullish, and MicroStrategy, recorded sharp losses, reflecting broader investor unease. As a result, market sentiment turned defensive, with traders shifting toward gold and U.S. Treasuries for safety.
This downturn echoes previous declines linked to Trump-era trade tensions earlier in 2025. Analysts caution that renewed geopolitical friction may delay recovery and threaten global risk assets. With volatility surging and regulatory uncertainty rising, the crypto market now faces a major test of resilience as investors watch the $100,000 Bitcoin support level closely.
