The cryptocurrency market experienced a severe flash crash on Friday after President Trump announced additional 100% tariffs on China, causing massive liquidations across digital assets.
Bitcoin (BTC) plummeted below $110,000, recording a 12% decline over 24 hours, while Ethereum (ETH) dropped 16% to under $3,700. Major altcoins including XRP (XRP), Solana (SOL), and Dogecoin (DOGE) crashed 20-30%, with Cardano (ADA), Chainlink (LINK), and Aave (AAVE) tokens falling up to 40%.
According to CoinGlass data, the market collapse triggered over $7 billion in liquidations from long positions. The selloff intensified after Trump's Truth Social post announcing new tariffs effective November 1, coupled with export controls on critical software.
Bitcoin immediately fell $3,000 following the announcement. Traders compared the volatility to March 2020's COVID-19 crash, with prominent analyst Bob Loukas describing it as "Covid level nukes" while Ram Ahluwalia of Lumida Wealth cited overbought conditions exacerbating the decline.