The crypto market faced a massive $16 billion liquidation event tied to escalating US‑China trade tensions, leading to sharp reductions in BTC, ETH, SOL, and XRP values.
Notably, President Donald Trump’s announcement of tariffs on China triggered market unrest, with major crypto exchanges like Binance and Coinbase processing record liquidation volumes.
Bitcoin Sees Over 10% Drop Amid Market Turmoil
The liquidation resulted in significant price drops, with BTC falling over 10%, and ETH experiencing substantial long liquidations. XRP saw intraday losses up to 40% and only partial recovery.
Financial markets responded with increased volatility, affecting crypto and traditional assets alike. Historical trends suggest potential for both "V‑shaped" recovery and gradual stabilization.
Trade War Echoes in Current Crypto Instability
Past events like the 2018‑2019 trade war and March 2020 crash show similar cross‑asset shocks. The current situation mirrors these events, emphasizing the significant impact of geopolitical tensions on market stability.
Experts suggest that while immediate recoveries can occur, structural market changes may lead to longer‑term adjustments. DeFi protocols and large‑cap tokens remain particularly vulnerable during such events.
No verified public quotes from figures such as Arthur Hayes, CZ, or Vitalik on the liquidation event as of October 11, 2025.