Crypto Markets Plunge Further: $100 Billion Wiped Out in Hours as Trade War Fears Fuel Cascade of Liquidations
New York: The cryptocurrency market, still reeling from last week’s historic $19 billion liquidation event, suffered another brutal blow today, erasing over $100 billion in market value within a span of just three hours. Bitcoin (BTC) tumbled below $106,000 for the first time since early September, marking a 2.1% drop to around $106,547, while the total crypto market capitalization contracted by 2.7% to $3.7 trillion. Ethereum (ETH) followed suit, sliding 1.8% to $3,915, as altcoins like Solana (SOL), XRP, and Dogecoin (DOGE) posted losses of 3-5% or more.
This fresh wave of selling described by traders as a “second crash” or “bloodbath” has pushed the Crypto Fear & Greed Index to a dismal 22, signaling “extreme fear” across the sector. Liquidations surged to nearly $1 billion in the past 24 hours alone, with $725 million wiped out today, predominantly from long positions ($537 million). Over $250 million in positions were obliterated, amplifying the downward spiral through forced sales on major exchanges like Binance and Coinbase.
The Trigger: Lingering Trade War Tensions and Profit-Taking Hangover
Today’s downturn builds directly on the chaos that unfolded over the October 10-11 weekend, when U.S. President Donald Trump’s announcement of 100% tariffs on critical Chinese software and tech imports ignited a global panic. That event, dubbed the “October 2025 Crypto Crash” in industry circles, triggered the largest single-day liquidation in history $19.3 billion—nine times the scale of February’s earlier dip and 19 times bigger than the 2022 FTX collapse. Bitcoin plummeted 14% from $122,500 to a low of $104,600, while Ethereum cratered 21% and altcoins like XRP and SOL shed 20-30%.
Analysts point to a toxic mix of factors for today’s escalation:
- Geopolitical Ripples: Renewed U.S.-China trade hostilities, including China’s retaliatory rare-earth export restrictions, have severed crypto’s perceived “safe-haven” status from assets like gold. Traditional markets closed lower yesterday amid broader economic jitters, but crypto’s 24/7 trading exposed it to immediate fallout. “Geopolitical tensions are the match; excessive leverage is the gasoline,” said Nic Puckrin, co-founder of The Coin Bureau.
- Liquidation Cascade: High leverage—open interest on Bitcoin had surged 374% year-to-date—created a feedback loop. As prices dipped, automated margin calls forced sales, exacerbating the slide. CoinGlass data shows $208 million liquidated in the past hour, with longs accounting for 88% ($183.7 million). Miners dumped an estimated $5 billion in BTC on Binance, flooding the order books.
- Profit-Taking and Sentiment Shift: After a brief rebound to $115,000 on Monday, investors cashed out gains from weekly toppers, extending the “hangover” from last week’s event. On-chain metrics from Glassnode reveal declining investor flows and a spike in stablecoin outflows, while X (formerly Twitter) buzz reflects widespread despair—posts lamenting “worse than FTX” sentiment and calls to “get funds off Binance” due to alleged oracle flaws.
| Asset | Price (USD, as of 8:00 PM UTC) | 24h Change | Weekly Low |
|---|---|---|---|
| Bitcoin (BTC) | $105,252 | -5.1% | $104,783 |
| Ethereum (ETH) | $3,733 | -6.69% | $3,700 |
| Solana (SOL) | $77 | -8.5% | $160 |
| XRP | $2.23 | -6.69% | $2.10 |
| Dogecoin (DOGE) | $0.17827 | -9.1% | $0.170 |
| Litecoin (LTC) | $85 | -10% | $85 |
Altcoins Eviscerated, Stablecoins Wobble
Altcoins bore the brunt, with the “altcoin complex” dropping to levels unseen in over a year. Solana fell 3.5% to $180 amid DeFi protocol stress, while XRP and Chainlink (LINK) shed 2-4% as ETF approval delays loomed. Meme coins like DOGE plunged 4%, and even blue-chips like Cardano (ADA) and Aave (AAVE) lost up to 40% from weekly highs.
Stablecoins, often a flight-to-safety haven, showed cracks: Ethena’s USDe briefly depegged from the dollar, and Tether (USDT) traded above peg on some platforms, hinting at liquidity strains. Centralized exchanges (CEXs) faced scrutiny—rumors swirled of a $400 billion liquidation tied to Binance’s “faulty internal price oracles,” though unverified reports peg the platform’s direct losses at $1-4.5 billion. Crypto.com’s CEO reportedly filed a lawsuit against Binance, urging users to withdraw funds, but no official confirmation has emerged.
The crash’s global repercussions extend beyond crypto: Stock futures dipped 0.5% in after-hours trading, and analysts warn of spillover into tech-heavy indices like the Nasdaq. “This exposed the fragility of a leverage-driven market,” noted a BPM report, projecting AI-blockchain integrations as a post-crash growth driver but urging regulatory clarity.
Panic, Resilience, and Conspiracy Theories
Social media erupted with raw emotion. Veteran trader @Crypto_shibu boasted shorts opened at $124,000 and $113,000, capturing the downside, while @hoteliercrypto quipped, “How many times have you felt this crash? Still not tired of crypto?” Newer voices, like @iamamal97, shared heartbreak: “After five years… I’ve lost my entire life savings. The bubble has burst and it broke me.”
Conspiracy theories proliferated—claims of a “coordinated attack” via oracle manipulation or U.S. government Bitcoin seizures to combat “criminal money laundering.” On-chain sleuths dismissed these, attributing the drop to “volume concentration flaws” in price feeds, amplifying a $60 million glitch into a $19 billion rout. Others, like @brandank_cr, eyed a deeper plunge if BTC breaches $99,500, calling it a “full leverage reset.”
