Crypto Sees More Than $6 Billion in Liquidations
The cryptocurrency market suffered the largest crypto liquidation in history after the United States announced an additional 100% tariff on Chinese imports alongside export controls on critical software, roiling risk assets worldwide. Within 24 hours, more than $19 billion in leveraged positions was wiped out and over 1.6 million traders were liquidated, according to CoinGlass figures cited by multiple outlets. Bitcoin, which set a record above $125,000 earlier this week, fell roughly 12% to trade below $113,000 at points late Friday and early Saturday.
Market impact and liquidity dynamics
Selling pressure deepened as forced liquidations swept across major derivatives platforms. CoinDesk, citing CoinGlass data, noted that actual liquidation totals may be even higher due to reporting delays, especially on high-volume exchanges. Within a single hour, more than $7 billion in leveraged positions were wiped out, underscoring the market’s fragility.
Options data reflected a defensive tone among traders, with notable put interest concentrated near the $110K and $100K Bitcoin strike levels. This positioning suggests many participants are bracing for additional downside or seeking protection amid ongoing volatility.
Policy shock: tariffs and export controls
Friday’s slide followed new trade measures from Washington: an additional 100% tariff on Chinese imports, with the administration also tightening software export controls. The announcement, delivered via social media statements and later reported by wire services, rekindled US–China trade tensions and rattled equities and commodities alongside crypto. Reuters+1
Key levels and what traders are watching
Some derivatives desks flagged $100,000 as a major support for Bitcoin; a decisive break could mark a structural shift after a three-year bull cycle, according to options-market commentary. Attention now turns to counterparty exposure and whether stress in leveraged products spills into spot markets and market-making liquidity.
Risk and positioning after the largest crypto liquidation in history
With leverage flushed out, analysts are split on near-term direction. Some expect volatility to remain elevated while liquidity rebuilds; others anticipate reflexive rebounds once forced selling abates and margin levels normalize. Macro correlations particularly to growth equities remain in focus as traders parse the trade-policy path.
Navigating portfolios amid the largest crypto liquidation in history
Portfolio managers are emphasizing position sizing, collateral buffers, and hedges (e.g., puts, basis trades) to manage drawdowns while maintaining convexity to any rebound. Exchange and counterparty risk reviews are front and center after the liquidation wave.
Context & Analysis
The tariff shock was an exogenous catalyst for a market already rich in leverage following fresh highs. The liquidation magnitude, surpassing prior records from episodes like the Terra/FTX periods, underscores crypto’s derivatives-heavy structure. If policy uncertainty persists, cross-asset correlations and liquidity gaps could keep volatility elevated even after the initial flush.
Conclusions
Record liquidations have shaken up crypto markets, forcing a broad reset in trader positioning. Attention is now centered on whether Bitcoin can maintain support near the $100K mark, while investors closely track policy developments and potential signs of strain among major counterparties.
Market participants suggest that stabilization in derivatives indicators, combined with more consistent policy signals, could help restore balance. A clearer regulatory outlook and improved liquidity conditions may set the stage for steadier price discovery after one of the most volatile phases in recent months.
FAQs
Q : What caused the market rout?
A : The US announced an additional 100% tariff on Chinese imports and new software export controls, triggering broad risk-off selling.
Q : How big was the damage?
A: Over $19B in leveraged positions were liquidated within 24 hours, affecting more than 1.6 million traders the largest on record.
Q : Did Bitcoin hit key technical levels?
A : Bitcoin dropped around 12% from recent highs, testing the $110K–$113K zone, with $100K cited as a major support level.
Q : Is this the largest crypto liquidation in history?
A : Yes, multiple outlets citing CoinGlass data confirm it as the largest single-day liquidation event to date.
Q : What should traders watch now?
A : Key focus areas include counterparty exposure, funding rates, open interest, and upcoming policy headlines related to tariffs and export controls.
Q : Could there be contagion to other markets?
A : Equities and commodities also declined on the news; cross-asset stress remains a risk if policy uncertainty continues.
Q : Where can I track liquidation data?
A : Reliable aggregators such as CoinGlass (frequently cited by major outlets) provide live liquidation and open interest statistics.
Facts
Event
Record crypto market liquidations following US tariff escalation on ChinaDate/Time
2025-10-11T09:48:00+05:00Entities
United States (trade policy); People’s Republic of China; Bitcoin (BTC); CoinGlass (data); major crypto exchangesFigures
$19B+ liquidations (24h); 1.6M+ traders; Bitcoin down ~12% from ATH > $125K to sub-$113KQuotes
“The largest liquidation event in crypto history.” CoinGlass, via X | “The focus now turns to counterparty exposure and whether this triggers broader market contagion.” Brian Strugats, Multicoin Capital (as reported)Sources
Bloomberg; Reuters; CoinDesk; SCMP.South China Morning Post+3Bloomberg+3Reuters+3