According to Coinglass, this geopolitical event triggered the largest crypto liquidation in history, with over $19 billion in leveraged positions wiped out in just 24 hours, affecting approximately 1.6 million traders.
Bitcoin led the selloff, losing on long positions after sliding more than 12% from its recent all-time high above $125,000 to below $113,000 during Friday’s trading session in New York. The main losses were suffered by Bitcoin at $5.34 billion and Ethereum at $4.39 billion, with Solana contributing $2 billion and other altcoins accounting for another $1.5 billion.
In its article on X, Coinglass said the total could be much higher given that exchanges do not necessarily report these orders in real time. Binance Holdings, the world’s largest cryptocurrency exchange, reports only one liquidation order per second, according to the post.
The sudden hike in tariffs has increased fears of a worsening trade war between the United States and China, sending shockwaves not only through cryptocurrencies but also traditional markets such as stocks and oil. Brian Strugats, chief trader at Multicoin Capital, warned of counterparty risks and potential contagion effects that could amplify market turmoil. Some analysts estimate the total liquidations could exceed $30 billion, as market participants reassess risks amid geopolitical tensions.
Trump announced that starting November 1, the United States would impose a doubling of tariffs on Chinese goods in response to what he described as China’s “aggressive trade stance,” including Beijing’s recent export restrictions on rare earth minerals critical to technology manufacturing. The move also includes new U.S. controls on software exports, further intensifying the economic standoff. This dramatic selloff highlights the volatility of crypto markets in response to geopolitical events and regulatory changes. Investors are now closely monitoring developments in these tariffs and trade policies, as ongoing tensions threaten market stability across traditional and digital asset classes.
