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- Crypto market sell-off, sparked by Donald Trump’s 100% tariff announcement on China, sent Bitcoin to $105,000 and caused altcoins like ETH, BNB, XRP, and SOL to fall 12–20%.
- Despite the turmoil, analysts point an 81% chance of tariff resolution by Nov. 10, which could lead to broader market recovery.
The crypto market has seen one of the biggest crashes in nearly three years since the FTX collapse in November 2022, wiping out more than $670 billion of investors’ wealth. For reference this is more than the entire market cap of VISA swallowed in a single day. Furthermore, a massive $19 billion in leveraged liquidations took place, flushing out most of the traders while triggering a market reset.
Crypto Market Loses $670 Billion Amid CEX Meltdown
The cryptocurrency market faced one of its biggest single-day crashes in history, erasing over $670 billion in value as widespread auto-liquidations rippled across major centralized exchanges (CEXs). Veteran trader Arthur Hayes noted that automatic collateral liquidations on major venues intensified the sell-off, sending many altcoins on Binance down by as much as 90%, as reported in our previous post.
More than 1.6 million traders were liquidated within 24 hours, marking the largest liquidation event ever recorded in crypto, with total losses exceeding $19 billion. The previous record was set in May 2021, when the Bitcoin price dropped from $43,000 to $30,000, wiping out $8.6 billion in leveraged positions.
Major cryptocurrencies, including Ethereum (ETH), Binance Coin (BNB), XRP, and Solana (SOL), fell between 12% and 20%, while DOGE, LINK, and ADA saw even deeper declines. The crash was triggered by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports, which fueled a global risk-off sentiment.
In today’s crypto market crash, Bitcoin briefly plunged to $105,000 before rebounding to $112,000 at the time of reporting, as volatility remained extreme across crypto markets.
Data from Coinglass shows that the recent market flush wiped out nearly all major long positions, leaving liquidity concentrated on the upside. With leverage reset and positions largely cleared, analysts suggest that markets are now poised to follow liquidity higher in the next move
Will Crypto Recover Anytime Soon in Q4?
Despite rising trade tensions between the United States and China, both nations are preparing to inject significant liquidity into their financial systems. Veteran trader Arthur Hayes stated that this move could extend Bitcoin’s bull cycle.
Hayes highlighted that the U.S. Federal Reserve cut interest rates by 25 basis points in September 2025. This has drained approximately $2.5 trillion from its Reverse Repo Program, signaling an accommodative policy stance. On the other hand, China is shifting from a deflationary posture to a more supportive monetary policy. Thus, the macro picture looks favourable for Bitcoin and the crypto market recovery.
Data from Polymarket indicates an 81% probability that the U.S.–China tariff dispute will be resolved by November 10. Analysts note that both sides have limited incentives to extend the conflict, suggesting that a resolution could be reached soon.
