Overview: A Market Shaken by Tariffs and Liquidations
The cryptocurrency market is facing its worst sell-off in history following Donald Trump’s announcement of 100% tariffs on China. Bloomberg reports, citing 24-hour data from Coinglass, that more than $19 billion was wiped out in liquidations, affecting more than 1.6 million traders. In the first hour alone, more than $7 billion worth of positions were liquidated, highlighting the speed and severity of the move.
Scale and Speed of the Crash
Analysts say we are looking at an extraordinary liquidation event. Brian Strugats, head trader at Multicoin Capital, suggests totals could top $30 billion when accounting for broader market contagion. The shockwave is evident across major coins and altcoins, as traders faced forced liquidations in leveraged positions amid sudden volatility triggered by geopolitical and macro news flow around tariffs and trade tensions.
Current Market Snapshot
According to CoinMarketCap data cited in the Bloomberg report, the overall crypto market cap has slumped from a record around $4.30 trillion to roughly $3.74 trillion. Trading volumes for the day approached $490 billion, signaling intense market activity as positions were unwound.
Bitcoin dominated the market with roughly 59.8% of total market capitalization while Ethereum accounted for about 12.2%. The remaining tokens formed 27.9% of the crypto pie, underscoring Bitcoin’s continued influence even amid widespread volatility.
Prices in Focus: Bitcoin and Ethereum
At around 12:42 pm on October 11, Bitcoin traded at approximately $111,542.91, down about 8% on the day, with a market cap near $2.22 trillion and a 24-hour trading volume of about $183.88 billion. Ethereum faced a sharper retreat, slipping around 12.7% to roughly $3,778.31, with its market cap near $456 billion and a 24-hour trading volume of about $112.75 billion.
The steep declines reflect both systemic risk and the potential for cascading liquidations in leveraged markets, where traders face margin calls and forced exits as prices move rapidly against their bets.
Expert Voices: What This Means for the Path Ahead
Industry observers offer mixed but cautionary takes. Caroline Mauron, co-founder of Orbit Markets, notes that the next major support level for Bitcoin sits near $100,000. A breach below this threshold could be interpreted as signaling an end to the current three-year bull cycle for the token, reinforcing the fragile sentiment in risk assets.
David Jeong, CEO of Tread.fi, describes the episode as a “black swan event” for the market. He suggests that many institutions underestimated the level of volatility and, given how leveraged perpetual futures markets operate, a number of large traders—including institutions—likely faced liquidations as positions could not be maintained under sudden price swings.
Why This Might Signal Broader Market Risks
Crypto markets remain highly interconnected with macro news and policy developments. A surge in risk-off behavior, forced liquidations, and cross-asset contagion can push digital assets into a broader risk-off dynamic. Investors should monitor central bank signals, exchange volatility mechanisms, and liquidity availability in the coming sessions, as these factors will shape whether the market establishes a bottom or extends the sell-off.
Takeaway for Traders and Investors
With $19 billion in liquidations reported in a single session and fears of further contagion, the current environment calls for prudent risk management. This includes reassessing leverage levels, setting and respecting stop losses, and staying informed about policy developments that can rapidly alter market sentiment. As always with crypto markets, volatility is high, but so too is the potential for rapid recovery should macro and crypto-specific factors align positively.
