Crypto Crash 2025: Bitcoin Dives Below $110K in Trump Tariff Flash Crash – Ethereum, BNB, and Altcoins Reel from $19B Liquidation Bloodbath
New Delhi : In a stunning blow to the booming crypto market, a surprise announcement from President Donald Trump ignited the largest liquidation event in cryptocurrency history, wiping out nearly $19 billion in leveraged positions and sending shockwaves through Bitcoin, Ethereum, BNB, and the broader altcoin ecosystem. The “Trump Surprise” – a 100% tariff on all Chinese imports – triggered a flash crash that erased over $1 trillion from the total crypto market cap in hours, turning weekend optimism into widespread panic.
As traders brace for potential retaliation from Beijing and escalating U.S.-China trade tensions, Bitcoin price forecasts point to further volatility, with key support levels at $100,000 in sight. This crypto market crash today serves as a stark reminder of the sector’s vulnerability to global macro events, even as it rebounds from post-election highs.
What Sparked the Crypto Crash Today?
The turmoil erupted around 10:15 AM ET when Trump held an unannounced White House presser, railing against China’s “currency manipulation and tech theft” before unveiling the immediate 100% tariff hike. He followed up with a Truth Social post detailing the policy, amplifying the shock across global markets. Stocks plunged, oil prices dipped below $60 per barrel, and risk assets like cryptocurrencies bore the brunt.
Crypto’s high-leverage environment amplified the fallout: Overconfident bulls, riding Bitcoin’s recent surge past $126,000, faced cascading liquidations as funding rates flipped negative. Exchanges like Binance and Bybit reported $16-19 billion in wiped-out positions – dwarfing the 2022 FTX collapse and the 2020 COVID crash by a factor of 20. An estimated 1.6 million traders were “rekt,” with 80% of losses from long positions.
The blockchain itself proved resilient, processing transactions seamlessly amid the chaos, but centralized platforms buckled under trading volume spikes.
Bitcoin Price Crash: From $123K Highs to $105K Lows
Bitcoin (BTC), the crypto market’s bellwether, led the descent with a brutal 8-10% drop in minutes, shedding $12,000 from its perch above $123,000 to hover around $105,000-$111,000 by midday. The flash crash sliced through key technical levels, with Bitcoin dominance surging above 60% as capital fled riskier assets.
Current Bitcoin price: $105,842 (down 9.2% in 24 hours). Analysts note BTC’s relative strength – it avoided a new all-time low and maintained its bullish structure – positioning it as a potential hedge in the fiat turmoil. However, with volatility at 50%+, a breach below $100,000 could signal deeper pain.
“Bitcoin’s the ultimate borderless asset in a trade war,” one trader posted on X, echoing sentiment that spot holders fared better than leveraged speculators.
Ethereum Price Drop: ETH Slips Under $4K Amid DeFi Panic
Ethereum (ETH), the backbone of decentralized finance (DeFi), suffered a sharper 15% gut punch, tumbling below $4,000 to $3,400 in the initial sell-off. The plunge exacerbated fears over network upgrades and staking yields, as liquidations hit DeFi protocols hard.
Latest Ethereum price: $3,456 (down 14.8%). ETH’s correlation with macro risk – now at 0.85 with Nasdaq futures – underscores its sensitivity to tariff-induced inflation spikes. Despite the pain, some see this as a buying opportunity, with ETH trading near “attractive entry levels” ahead of potential Q4 upgrades.
BNB Chain Outage Adds Insult to Injury in Binance Coin Crash
Binance Coin (BNB), tied to the world’s largest exchange, cratered 20-25% to around $450, compounded by a brief BNB Chain outage that halted meme coin trading and amplified the chaos. The network’s “meme magic” tokens saw spreads widen dramatically as liquidity evaporated.
Current BNB price: $458 (down 22.3%). The outage, lasting under an hour, fueled speculation of insider dumps, but Binance CEO Kris Marszalek called for regulatory probes into “colossal $20B liquidations.” BNB’s plunge highlights altcoin fragility, with recovery hinging on resolved trade talks.
Altcoins in Freefall: Solana, XRP, and Memes Hit Hardest
The altcoin bloodbath was merciless: Solana (SOL) plunged 25-30% below $200, XRP shed 20% to $0.45, and meme coins like Dogecoin (DOGE) broke psychological supports at $0.20, hitting $0.11 amid 70-90% drawdowns in niche tokens. Total altcoin market cap evaporated $500 billion, with thin order books exacerbating the rout.
Top altcoins to watch post-crash:
– Solana (SOL): Down 28% to $185 – Opportunity for L1 scalability plays?
– XRP (Ripple): 21% drop to $0.44 – Trade war could boost cross-border utility.
– Dogecoin (DOGE): 45% wipeout to $0.11 – Meme resilience tested.
Tragic human cost emerged: A 32-year-old Kyiv crypto influencer, Konstantin Galich, was found dead in his Lamborghini, reportedly from a self-inflicted wound amid the crash.
– Total crypto market cap: $2.22 trillion (down 22% from $3.5T peak).
– Liquidations taper to $10B, but shorts dominate with negative funding rates.
– BlackRock’s Bitcoin ETF saw $2B outflows; gold and Treasuries rally.
– X buzz: “This was our 9/11 Black Swan,” one user lamented, while others preach “DCA Bitcoin only, cold storage.”
Crypto Market Outlook: Buy the Dip or Brace for Impact?
This 2025 crypto crash underscores leverage’s dangers – “Don’t trade, just DCA,” as one X post advised. For long-term holders, it’s a reset flushing weak hands before the next bull leg. Bitcoin crash recovery could hinge on U.S.-China diplomacy, but altcoin season whispers loom for resilient projects.
Stay tuned for Bitcoin price predictions, Ethereum upgrades, and BNB Chain fixes.
