Crypto Market Suffers Record $19B Liquidation After Trump’s Tariff Shock

The crypto market has just witnessed its largest liquidation event ever. More than $19 billion in leveraged positions were wiped out within 24 hours following former President Donald Trump’s surprise announcement of sweeping new tariffs on key U.S. trading partners.

The shock tariffs, aimed at China and the European Union, sent global markets spiraling and triggered a massive wave of risk-off sentiment — with crypto traders bearing the brunt.

Bitcoin, Ethereum Lead the Crash

Bitcoin (BTC) plunged nearly 14% intraday, dropping from $120,400 to below $103,000 before finding some footing near $106,500. Ethereum (ETH) saw an even steeper slide, tumbling 18% to trade around $4,050 at one point.

According to data from Coinglass, over 940,000 traders were liquidated, with the largest single liquidation order totaling $86 million on Binance.

Among altcoins, Solana (SOL) and BNB both fell over 20%, while Dogecoin (DOGE) lost nearly 25% in 24 hours. The total crypto market capitalization shed over $380 billion in value by Sunday night.

Trump’s Tariff Announcement Sparks Global Panic

During a late-Friday rally, Trump announced a sweeping new economic policy — a 20% tariff on imports from China and 10% on European goods, citing “unfair trade practices” and the need to “protect American jobs.”

The move shocked investors who had expected softer trade rhetoric following the administration’s earlier dovish tone. Instead, the announcement reignited fears of a global trade war and triggered sharp sell-offs across equities, bonds, and digital assets.

“Crypto traders were over-leveraged at record highs,” said Jason Lau, Chief Market Strategist at OKX. “The tariff shock provided the perfect storm for liquidations — a classic deleveraging cascade.”

The Largest Liquidation In Crypto History

Liquidation data confirms the historic scale of the event:

The total: $19 billion in forced liquidations, eclipsing the previous all-time record of $8.9 billion set during the May 2021 crypto crash.

Traders Caught Off-Guard

The market carnage unfolded rapidly. As tariff headlines hit, traders rushed to unwind positions, but cascading margin calls overwhelmed liquidity across major exchanges. Funding rates on perpetual futures turned sharply negative, and on-chain analytics showed massive Bitcoin outflows from exchanges to cold wallets.

Crypto Fear & Greed Index plummeted from 72 (Greed) to 19 (Extreme Fear) overnight — its lowest reading since November 2022.

“It’s a brutal reminder that macro events still dominate crypto,” said Rachel Ho, senior economist at Chainalysis. “Even decentralized markets can’t escape global policy shocks.”

What’s Next For Bitcoin and Crypto

Analysts remain divided on whether this marks the start of a deeper correction or a short-term flush before recovery.

• Bullish case: Analysts at Standard Chartered say the sell-off could be a “healthy reset,” creating space for renewed institutional entry around $100,000 BTC support.
• Bearish case: Others warn that continued geopolitical uncertainty and tariff escalation could drag Bitcoin toward the $90,000 region before stabilizing.

Ethereum, meanwhile, is expected to find major support near $4,000, with on-chain data showing large whale accumulation zones.

Key Takeaways

• $19 billion in positions liquidated — largest in crypto history.
• Trump’s tariffs triggered a global risk-off wave across all asset classes.
• Bitcoin fell below $104K, Ethereum to $4K, and altcoins dropped over 20%.
• Market leverage reset may pave the way for long-term recovery.

Final Thoughts

The unprecedented $19 billion liquidation shows how fragile the crypto market remains in the face of macroeconomic shocks. But with leveraged excesses flushed out, analysts believe the groundwork for the next leg up could soon form — provided global trade tensions ease.

For now, traders are watching one key question:
Will Bitcoin’s $100,000 floor hold, or is there more pain ahead?