$16 Billion in Crypto Longs Liquidated as Trump’s 100% Tariff Threat Sends Bitcoin Into Freefall
In one of the wildest sessions in recent memory, the crypto market was rocked overnight by a sharp flash crash. Bitcoin slid more than 10%, briefly touching ~$105,000, before clawing back some losses. The trigger: Donald Trump’s announcement of 100% tariffs on Chinese imports, which reignited fears of a full-blown trade war.
This turbulence didn’t just rattle nerves — it liquidated over $16 billion in leveraged long positions across the crypto spectrum.
The Crash — What Went Wrong
Markets were already on edge amid lingering global volatility. But Trump’s tariff declaration acted like a matchstick in a dry forest.
- Bitcoin plunged sharply — from the $115k–$120k zone into the $104k–$108k range, wiping out momentum.
- Ethereum, Solana, XRP and other altcoins were caught in the crossfire — double-digit losses as traders rushed to de-risk.
- The derivatives space was hit hardest: more than $16 billion in longs got liquidated, exacerbating the downside cascade.
The vast majority of the forced liquidations were long bets — meaning traders had positioned expecting prices to continue upward. With the sudden flip, margin calls and stop losses cascaded.
Why This Stung So Hard
This wasn’t just a crypto blow-off. It was macro risk bleeding into digital assets.
- Geopolitical Shock — The tariff threat wasn’t just noise. Markets saw it as a sign the U.S.–China standoff was escalating again.
- Leverage Amplification — The crypto derivatives market is highly leveraged; even small shifts can cascade violently.
- Liquidity Stress — In such sudden falls, liquidity dries up. Bids evaporate, and slippage amplifies moves.
- Sentiment Flip — Traders who were broadly bullish got jolted, sentiment flipped to fear fast.
What It Means for the Market Now
- Volatility is back — That kind of liquidation event injects chaos. Expect larger intraday swings for a while.
- Support zones tested — Those $100k–$110k levels become critical. If they break, things could get uglier.
- Capitulation risk — Some weak hands might throw in the towel, leading to deeper drawdowns.
- Opportunity for contrarians — For those with conviction, episodes like this often sow foundations for future strength.
- Watch macro closely — This is no longer just crypto territory — it’s tied to trade policy, global risk, rates.
Voices from the Field
“This flush is in the top 3 all time … there are a lot of people in incredible pain right now.” — Posted by a trader known as Pentoshi, echoing the panic.
“The altcoin complex got absolutely eviscerated … full leverage reset and market dislocation.” — Zaheer Ebtikar, CIO of Split Capital.
Final Word
This week’s liquidation shock is a reminder that crypto still dances to the rhythm of global politics and macro risk. The flash crash exposed how quickly sentiment can flip when leverage meets uncertainty. For now, Bitcoin has steadied above the $110K line, but traders know the echoes of nights like this tend to last for weeks — not days.
See all our insights: Bitcoin World News
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