The cryptocurrency market is stabilizing after one of the most violent crashes of 2025, sparked by President Donald Trump’s sudden announcement of a 100% tariff on all Chinese imports.
The policy, set to take effect on November 1, sent shockwaves through global markets and triggered an unprecedented wave of crypto liquidations.
At the time of writing, Bitcoin (BTC) has rebounded to $112,285, recovering from a steep drop below $106,000 overnight. The decline erased more than $200 billion in market value within hours before buyers stepped in near key support levels. Analysts described the move as “panic-driven,” fueled by fears of a prolonged U.S.–China trade conflict.
Ethereum (ETH) experienced a similar rollercoaster, plunging to $3,500 before recovering sharply to $3,794. The recovery came as traders reassessed the scale of the tariff impact and began reentering long positions. Meanwhile, XRP trades at $2.44, still down 13.5% in the past 24 hours, while Solana (SOL) has fallen 16.1% to $185.47.
Trump’s tariff announcement followed his claim that China had notified other nations of plans to impose sweeping export controls, a move he called “a moral disgrace in international trade.” The President said the U.S. response would be “immediate and severe,” including new export restrictions on critical software.
The market reaction was swift. According to data from Hyperliquid, over $19.3 billion in leveraged positions were liquidated across exchanges within 24 hours, affecting 1.66 million traders. A single ETH-USDT liquidation worth $203 million marked the day’s largest wipeout.
Despite the carnage, Bitcoin and Ethereum’s rapid rebound suggests strong institutional buying interest at lower levels. Still, volatility remains elevated, and traders are bracing for further turbulence as macro and political tensions intensify ahead of November.