President Trump’s announcement of additional tariffs on China triggered the largest forced liquidation in cryptocurrency history!
Bitcoin plummeted to $102,000 at one point, leading to chaos as $7 billion in crypto assets were liquidated in just a few hours.
The largest long positions ever collapsed, sending shockwaves through investor sentiment!
Amid this historic market turmoil, some economists suggest Bitcoin could rebound by as much as 21% in the next seven days!
Trump’s announcement of 100% tariffs on China has sent ripples through global financial markets, causing a surge in volatility in the cryptocurrency market!
Let’s analyze the news about the global economy and cryptocurrencies and consider economic trends together!
… [Largest-ever forced liquidation hits the cryptocurrency market]
“Bitcoin is surprisingly resilient when faced with geopolitical turmoil.” This is often said, but this time, that resilience was put to the test.
On October 10, 2025, former President Trump announced 100% additional tariffs on China, triggering severe turmoil in the cryptocurrency market. Bitcoin, in particular, plummeted to $102,000 at the largest cryptocurrency exchange, Binance. In just a few hours, approximately $7 billion in crypto assets were liquidated, resulting in the largest collapse of long positions in the market’s history.
The scale of this forced liquidation far surpassed previous records, resulting in an unprecedented situation in which approximately $16 billion worth of long positions were liquidated in one go. The background to this is the sudden increase in geopolitical risk due to Trump’s escalating trade war with China, and the resulting increased risk aversion among investors.
While political tensions and financial shocks have caused significant market volatility in the past, liquidations of this magnitude and speed are extremely rare. Many market participants and investors are calling this “the biggest shock in history.”
On the other hand, some economists have pointed out that “analyzing similar cases in the past suggests that Bitcoin could rebound by up to 21% in a seven-day period,” stoking hopes that a recovery phase will follow after a period of turmoil.
[Three Important Signals from This Turmoil]
This intense market volatility contains three signals we must not overlook.
First, the significant impact that geopolitical risks have on the cryptocurrency market. Trump’s announcement of additional tariffs on China directly dampened investor sentiment and accelerated risk aversion. This led to the automatic liquidation of many long positions, resulting in extreme increases in market liquidity and price volatility.
Second, this incident highlights market participants’ heavy reliance on leveraged trading. This forced liquidation was the result of the collapse of long positions, indicating that trading using large amounts of borrowing is a destabilizing factor in the market. This again highlights the risk that pursuing short-term profits can backfire.
Third, there is the possibility of a rebound after a historic drop. Economists’ analysis based on historical data has shown that there are several cases where a large drop has been followed by a significant price recovery in a short period of time. If this is the case again this time, it is expected that Bitcoin prices could recover to around 21% over the next week or so.
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