Bitcoin suffered a steep 8.4% drop to $104,782 on Saturday, leading a $19 billion wipeout across the cryptocurrency market, triggered by US President Donald Trump’s escalation of the US-China trade war. Trump announced 100% tariffs on Chinese tech exports and stringent export controls on critical software, accusing Beijing of aggressive trade tactics through restrictions on rare earth minerals. The news, posted on Truth Social, sent shockwaves through global financial markets, with the S&P 500 Index sliding over 2% on Friday. The crypto market saw unprecedented turmoil, with Coinglass reporting over 1.6 million traders liquidated in 24 hours, including $7 billion in positions sold off in under an hour. Brian Strugats, head trader at Multicoin Capital, warned that total liquidations could surpass $30 billion, raising concerns about counterparty exposure and potential broader market contagion.
Other major cryptocurrencies were hit hard: Ethereum fell 5.8% to $3,637, Binance Coin dropped 6.6% to $1,094.09, and XRP plummeted 22.85% to $2.33, slashing its market cap by 16.31% to $140.19 billion. Tether saw a slight 0.1% dip to $1.Despite the chaos, Edul Patel, CEO of Mudrex, suggested the market retains a bullish outlook. “Bitcoin briefly tested $102,000 before recovering to $113,000. Historical October corrections often precede relief rallies of up to 21%,” Patel noted, pointing to potential liquidity from capital rotation out of gold and anticipated U.S. spot altcoin ETF approvals. He views the dip as a buying opportunity for long-term investors in assets like Bitcoin and Ethereum.October 10’s plunge marked the largest single-day liquidation in crypto history, underscoring digital assets’ vulnerability to geopolitical tensions. As the US-China trade war intensifies, investors are bracing for further volatility and watching for signs of wider market fallout.
