Altcoins Plummet 40-60% After Trump’s Tariff Announcement: Crypto’s Largest Liquidation Event of 2025
- What Triggered the Altcoin Bloodbath?
- How Severe Were the Liquidations?
- Why Did Trump’s Tariffs Hit Crypto So Hard?
- How Are Traders Adapting?
- What’s Next for Crypto Markets?
- FAQ: Navigating Crypto Market Storms
The crypto market faced a historic purge on October 10, 2025, as altcoins nosedived 40-60% following former U.S. President Donald Trump’s shock announcement of 100% tariffs on Chinese imports. Bitcoin futures on Binance briefly crashed to $102,000, while spot prices on Coinbase slid to $107,000. Over $19 billion in liquidations rocked derivatives markets, with leveraged longs bearing the brunt. Here’s how the dominoes fell—and how traders can navigate such volatility.
What Triggered the Altcoin Bloodbath?
The selloff began with a perfect storm: attractive funding rates had lured overleveraged long positions, while Trump’s tariff announcement at 14:30 UTC became the catalyst for cascading liquidations. "This was a classic case of crowded trades meeting macro shock," noted the BTCC research team. Binance’s perpetual BTC futures flashed a terrifying $102,000 print—levels unseen since June—before algorithmic traders hastily rebuilt order books in jagged, panic-fueled rallies.
How Severe Were the Liquidations?
CoinGlass data reveals the staggering scale: 1.62 million traders liquidated within 24 hours, totaling $19.13 billion. The actual figure likely dwarfs this, as Binance reports only one liquidation order per second. Altcoins suffered disproportionately—Solana futures on Binance collapsed under $140, while aggregated order books showed "vacuum zones" where liquidity evaporated entirely. "We saw $7.15 billion in long liquidations alone," added the BTCC analyst. "When markets gap like this, even stop-losses can’t save you."
Why Did Trump’s Tariffs Hit Crypto So Hard?
The tariffs targeted China’s semiconductor metal exports, spooking investors who saw crypto mining and AI infrastructure as collateral damage. TradingView charts show Bitcoin’s correlation with NASDAQ futures spiking to 0.89 during the selloff—a reminder that crypto now dances to macro tunes. "Miners’ ASIC supply chains are China-dependent," explained a hedge fund manager who requested anonymity. "The market priced in a worst-case scenario where tariffs disrupt hardware production."
How Are Traders Adapting?
Survivors shared hard-earned lessons: reducing leverage when implied volatility exceeds 120%, splitting executions across multiple venues (including BTCC’s derivatives platform), and monitoring basis spreads between perpetuals and spot. Cold wallet hygiene became paramount—one DeFi user lost $340,000 after a dormant smart contract approval got exploited mid-chaos. "Rebuilding books takes hours," cautioned a market maker. "Chasing rebounds too early is like catching falling knives."
What’s Next for Crypto Markets?
As of October 12, BTC has stabilized near $110,000, but altcoins remain fragile. The BTCC team observes lingering risks: "Fed rate decisions on November 1 could reignite volatility, especially with current altcoin leverage at record highs." Historical data from CoinMarketCap shows such purge events typically see 2-3 weeks of suppressed volatility before sustained recovery—a pattern day traders WOULD ignore at their peril.
FAQ: Navigating Crypto Market Storms
How much was liquidated during the crash?
Over $19.13 billion across 1.62 million traders, per CoinGlass—the largest single-day liquidation event in crypto history.
Which altcoins dropped the most?
Mid-cap tokens saw the steepest falls (40-60%), particularly those with high futures open interest like Solana, Avalanche, and meme coins.
Should I buy the dip now?
This article does not constitute investment advice. However, seasoned traders emphasize waiting for liquidity to fully rebuild before re-entering positions.
