The cryptocurrency market has suffered huge losses. Trump’s announcement of imposing 100% tariffs on China has badly hit the crypto market, with crypto assets ranging from Bitcoin to Ethereum and Dogecoin falling drastically. Apart from this, the US stock market has also seen a huge decline, with stocks like NVIDIA, Tesla and Amazon under heavy pressure.
According to Bloomberg, the decision has affected more than 1.6 million crypto investors worldwide, resulting in the loss of more than $19 billion in crypto investments. In just one hour, more than $7 billion worth of investments were lost, the largest mass selloff in the history of digital assets. Meanwhile, crypto market capitalization has declined by $560 billion or $0.56 trillion today. Similarly, the stock market crash has also resulted in an estimated loss of $1.75 trillion. This means that if crypto and stock markets are combined, investors have lost approximately $2 trillion or ₹177.44 lakh crore.
The largest liquidation ever in the crypto market
A Bloomberg report, citing 24-hour data from CoinGlass, revealed that the announcement led to the largest-ever liquidations in the crypto market. More than $19 billion in assets were destroyed as traders quickly sold leveraged positions, leaving 1.6 million investors facing liquidation. Of these, positions worth more than $7 billion were liquidated in the first hour of trading on October 10 alone. Brian Strugatz, chief trader at Multicoin Capital, has estimated that total market losses could exceed $30 billion, as exchanges and DeFi platforms are at risk of widespread panic.
Catastrophe in crypto market!
Following the tariff shock, Bitcoin fell more than 8% to $111,542.91 as of 12:42 pm on October 11, reducing its market capitalization to $2.22 trillion. However, trading volume surged 145% to $183.88 billion as traders quickly exited leveraged positions.
The second-largest cryptocurrency, Ethereum, fell 12.7% to $3,778.31, with a market capitalization of $456.05 billion. Trading volume increased by 148% to $112.75 billion, indicating heavy selling pressure. According to CoinMarketCap, the total crypto market capitalization declined to $3.74 trillion from $4.30 trillion a day earlier, representing a loss of approximately $560 billion within 24 hours. Total trading volume during the decline exceeded $490.23 billion.
Trump’s tariffs
In a post on Truthout Social, Donald Trump announced his plan to impose 100% tariffs on all “critical software” and goods coming from China, effective November 1, 2025. He said the decision comes after China imposed new restrictions on rare earth minerals.