What to know
- •Historic $19 billion crypto liquidation; triggered by geopolitical tensions.
- •Bitcoin, Ethereum, Solana hit hardest.
- •1.6 million traders affected in major market shakeup.
On October 10, 2025, a $19 billion liquidation event in the crypto market, spurred by new U.S. tariffs on Chinese imports, affected 1.6 million traders globally.
The unparalleled liquidation highlights vulnerabilities in crypto leverage, leading to $1 trillion in market cap loss and potential long-term ramifications for global market stability.
Trump's Tariffs Trigger Record $19B Liquidation
On October 10, the largest liquidation in crypto history occurred. This was triggered by the announcement of a 100% tariff on Chinese imports by former US President Donald Trump.
Involving major exchanges like Binance, impacts were immediate, with exchanges unable to keep up with the volume of liquidation orders, impacting Bitcoin and Ethereum significantly.
$19 Billion Loss Impacts 1.6 Million Traders
The crypto community experienced profound effects, with $19 billion wiped out and significant losses reaching 1.6 million traders. Analysts are now scrutinizing the sustainability of leveraged trading. "The focus now turns to counterparty exposure and whether this triggers broader market contagion," said Brian Strugats, Head Trader at Multicoin Capital.
Major cryptocurrencies such as Bitcoin, Ethereum, and Solana saw drastic declines, with many altcoins severely impacted, highlighting potential vulnerabilities in the crypto ecosystem to geopolitical actions.
Surpassing Past Records: Implications for Risk Management
This event has surpassed the previous record of $2.1 billion liquidations, drawing parallels to past financial shocks and emphasizing the need for robust risk management in trading platforms.
Based on previous trends, market recovery is uncertain, with experts highlighting significant vulnerability due to geopolitical instability. The potential for further market contagion is being closely monitored.