2025-10-11T07:34:24Z

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Imagine waking up to news that $19 billion just vanished from the cryptocurrency market in one day. That's exactly what happened on Friday after former U.S. President Donald Trump dropped a bombshell: a 100% tariff on all critical software imports from China. This unexpected move sent digital assets spiraling downward, igniting one of the most significant sell-offs ever recorded.

Within just 24 hours, over 1.6 million traders faced liquidation, a staggering statistic reported by Coinglass. In the chaos, more than $7 billion in positions were liquidated within a single hour, and experts believe the real total could far exceed the reported numbers, especially since many exchanges don’t provide real-time data. Binance, the largest crypto exchange, can only report one liquidation order per second, highlighting just how chaotic things have become.

What led to this tumultuous day? The drama started when China enacted strict export controls on rare earth minerals, a vital component for technology and manufacturing. The U.S. government deemed this aggressive move unacceptable, prompting Trump's retaliatory tariff announcement, which he boldly declared on Truth Social.

As the dust settled, Bitcoin plummeted 7.6%, trading at around $112,394.31. Ethereum didn’t fare much better, suffering a 13% drop to $3,793. Other cryptocurrencies like Tether, Binance Coin, and XRP also faced significant declines, with XRP dropping a shocking 22.85% to $2.33, diminishing its market cap significantly.

Market experts are now worried about broader implications. Brian Strugats, head trader at Multicoin Capital, raised concerns about potential contagion effects, suggesting that total liquidations might surpass $30 billion. Meanwhile, Edul Patel, CEO of Mudrex, remains cautiously optimistic, viewing this chaos as a potential buying opportunity for long-term investors. He hints at historical trends where rapid corrections are often followed by relief rallies, and with impending approvals for several altcoin ETFs, the future might not be as bleak as it appears.

In the ever-volatile world of crypto, this day has highlighted the fragility of the market amidst geopolitical tensions. Investors must navigate these turbulent waters carefully, weighing short-term losses against potential future gains. Will this be a moment of despair or a chance to build positions before the next bull run? Only time will tell.