On October 11, 2025, the global cryptocurrency market faced an unprecedented collapse, marking one of the most dramatic downturns in modern financial history. The shock was triggered by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports, a move seen as retaliation against China’s restrictions on the export of rare earth elements. The decision immediately undermined investor confidence, causing simultaneous declines across both traditional and digital markets.
Following the announcement, the S&P 500 dropped 2.7%, while the digital asset market witnessed a record-breaking wave of liquidations. According to Coinglass, more than 19.1 billion dollars worth of leveraged positions were wiped out within 24 hours, affecting 1.6 million traders, marking the largest single-day altcoin liquidation in crypto history.
Bitcoin plunged below 105,000 dollars, while Ethereum slipped under 3,800 dollars. Major altcoins like Solana, Cardano, Avalanche (AVAX), and XRP suffered severe losses, with AVAX and XRP tumbling 61 and 62 percent respectively. As panic selling spread, the global crypto market capitalization fell 9.1 percent, reaching 3.86 trillion dollars. The hardest-hit investors were those using high leverage; on the Hyperliquid exchange, more than 10 billion dollars in positions were liquidated, with 9.3 billion in long positions erased. Despite the chaos, minor altcoins such as TRX, SUN, and JST showed brief rebounds.
The crash also hammered publicly traded crypto-related companies. Coinbase shares fell 7.75 percent to 357 dollars, Bullish dropped 9.4 percent to 60 dollars, MARA Holdings lost 7.6 percent, and Strategy, known for holding large Bitcoin reserves, declined 4.8 percent to 304 dollars. According to Geoffrey Kendrick, head of digital asset research at Standard Chartered, the net asset value index of Bitcoin-holding companies sank below 1.18, its lowest in two years, signaling increased balance sheet pressure across the sector.
Amid the turmoil, Google, Coinbase, and Mastercard launched the Agent Payments Protocol (AP2), aiming to integrate AI-driven payments with cryptocurrencies. However, the initiative did little to ease widespread fear. The Crypto Fear and Greed Index plummeted from 64 to 27 in just one day, reflecting the intensity of market panic.
Meanwhile, the Central Bank of Russia authorized limited crypto activities for local banks, and the G7 announced a new stablecoin initiative tied to major global currencies. These moves suggest a long-term shift toward stronger regulatory frameworks, even as markets grapple with short-term instability.