Cryptocurrency markets faced one of their steepest declines of the year after US President Donald Trump threatened a new round of tariffs on Chinese imports, triggering what analysts described as the largest liquidation event in crypto history. The total crypto market capitalisation dropped more than 9% to around $3.8 trillion, wiping out roughly $200 billion in value within hours. Bitcoin, which earlier this week hit a fresh all-time high above $126,000, was trading near $112,013 at last check, down 7.6% over the past 24 hours and 8.5% lower for the week. Ethereum fell 12.5% to $3,803, while Solana and XRP posted sharper declines of 16.5% and 14.3%, respectively. Binance’s BNB token slipped nearly 11% to $1,132, and Tether held its peg around $1.00. Record liquidations deepen the crypto market crash According to data provider Coinglass, more than $19 billion worth of leveraged crypto positions were liquidated in the past 24 hours, affecting over 1.6 million traders. CoinGlass @coinglass_com · Follow The largest liquidation event in crypto history.In the past 24 hours, 1,618,240 traders were liquidated, with a total liquidation amount of $19.13 billion.The actual total is likely much higher — #Binance only reports one liquidation order per second. 5:18 am · 11 Oct 2025 227 Reply Copy link Read 14 replies Of this, $7 billion was wiped out in less than an hour on Friday, as selling pressure cascaded across exchanges. The scale of forced liquidations—caused by automatic margin calls on over-leveraged positions—may have been undercounted due to exchange reporting limits. Coinglass noted that Binance, the world’s largest exchange, only logs one liquidation order per second, potentially masking the true extent of the sell-off. Market participants said the rout began when Trump declared plans for a 100% tariff on Chinese goods and export controls on software, measures that rattled risk assets globally. Bitcoin’s fall below $115,000 triggered margin calls and a wave of automated liquidations, further accelerating the decline. Sentiment turns cautious The abrupt reversal follows a week of heightened optimism that had pushed major cryptocurrencies to record levels. Analysts said the combination of geopolitical tension, high leverage, and overheated sentiment created the perfect conditions for a sharp correction. Despite the plunge, some traders see this as a temporary shake-out. Funding rates on futures contracts have reset closer to neutral levels, and long-term holders have shown limited selling activity so far. Analysts are now watching whether Bitcoin can hold above the $110,000 support zone. A sustained breach below that level could invite further losses, while a stabilisation above it might suggest the worst of the forced selling is over. Volatility is expected to remain elevated in the coming sessions as traders digest the policy shock and await possible responses from China. For now, the market’s euphoric rally has come to an abrupt halt—brought down not by crypto’s internal flaws, but by geopolitics colliding with over-leverage. The post Crypto market bloodbath: why BTC slipped below $113K, XRP crashed 13% appeared first on Invezz
