Collapse overnight! The crypto market evaporated over 400 billion dollars, Bitcoin fell to 105,000 dollars, and the culprit was surprisingly the "tariff shock wave".

On October 11, 2025, the global crypto assets market experienced the most severe dumping of the year, with the total market capitalization evaporating by over $400 billion, dropping to $3.74 trillion. The main trigger was the shocking announcement by U.S. President Donald Trump on Friday evening that a "trade war" would begin with a 100% tariff on Chinese imports starting November 1. In the wake of this macro risk shock, panic spread, leading the crypto market to trigger over $19 billion in epic Get Liquidated within hours, with Bitcoin hitting a low of $105,262, while Ether and many alts saw declines ranging from 16% to 90%.

Macroeconomic Panic Dominates: Trump's Tariffs Ignite Market Dumping Wave

So why did the crypto market fall sharply today? In fact, the core reason for this crypto market crash does not stem from within the encryption industry, but rather from the sudden global macro risks.

· The chain reaction of tariff shocks: On Friday evening, U.S. President Trump suddenly announced on Truth Social that the U.S. would impose a 100% tariff on Chinese imports starting November 1 and warned of new export controls on critical software. This unexpected trade policy shock immediately rocked the global financial markets, as investors quickly shifted to "safe haven" mode, leading to a significant dumping of stocks and risk assets like crypto.

· The attributes of risky assets are highlighted: Crypto Assets, especially Bitcoin, play the role of high-risk assets in the market. When trade tensions escalate between the two largest economies in the world, traders quickly exit risk exposure and shift funds to safer assets, which directly leads to a significant outflow of funds from the crypto market.

Epic Get Liquidated: $19 Billion Leverage Positions Vanish

The market decline triggered by macro news was magnified exponentially by the crypto market's unique high leverage trading structure, ultimately evolving into a rare liquidation frenzy in history.

· The scale of liquidations is astonishing: within just a few hours, the total amount liquidated in the crypto market reached an incredible $19.31 billion, with more than 1.6 million traders being liquidated. Among them, the liquidation amount for long positions reached $16.82 billion, indicating that before the crash occurred, the market generally expected prices to continue rising, with a large amount of leveraged longs being positioned.

· Huge Liquidation of ETH: A record single liquidation occurred at the Hyperliquid exchange, with a value of a single ETH-USDT position reaching up to 203 million USD. The automated liquidation system triggered by the chain reaction further accelerated the speed and depth of the fall, forming a "liquidation waterfall."

· USDe depegging exacerbates panic: To make matters worse, during a time of tight market liquidity, the USDe stablecoin briefly lost its peg to the dollar. This event further intensified panic and liquidations on leveraged platforms as institutions were forced to sell assets, making the dumping even more severe.

Major Coin Disaster: Bitcoin, Ethereum, and alts are all falling.

In the face of systemic risks, all crypto assets are not spared, especially high-risk alts that have suffered devastating blows.

· Bitcoin (BTC): As the market leader, Bitcoin's price fell to a low of $105,262, followed by a slight rebound. This price plunge wiped out most of the gains made over the past period.

· Ethereum (ETH): Ethereum fell by more than 16%, showing significant volatility as a major altcoin.

· Alts: Solana, XRP, as well as smaller Meme tokens like Dogecoin and Shib have seen declines ranging from 16% to 40%. Analysts warn that many alts were in an overbought state before the adverse news hit, leading to a selling spree where some alts experienced a terrifying drop of up to 80% to 90%.

Long-term Outlook: Strong Fundamentals, $110,000 is the Key Defense Line

Despite the market undergoing a "bleeding" style correction, analysts generally believe that the long-term fundamentals of the bull market remain solid from a macro perspective.

· The positive factors remain unchanged: global liquidity is still expanding, and the inflow trend of funds from institutional investors into Bitcoin ETFs continues to grow. These core fundamental factors have not changed due to short-term macro shocks.

· Key support level: Currently, whether Bitcoin can hold above $110,000 is seen as the most important technical support level in the short term. If this level can be stabilized, bulls may make a quick comeback, and the market is expected to achieve a rapid rebound from this panic selling.

· Operational Advice: For investors with a strong risk tolerance, a non-fundamental collapse triggered by macro black swan events is often seen as a good opportunity to accumulate quality assets at low prices. However, considering the market remains full of uncertainty before the tariff comes into effect on November 1, it is advised that investors stay vigilant, avoid using high leverage, and closely monitor the support level at $110,000.

Conclusion

The crypto market storm in October 2025 was a typical liquidity crisis triggered by a macro event, brutally showcasing the fragility of a high-leverage market with a liquidation scale exceeding 19 billion USD. Although the market faced significant shocks in the short term, long-term positive factors such as macro liquidity expansion and ongoing institutional interest in Crypto Assets have not reversed. This correction cleared a substantial amount of excessive leverage, laying the groundwork for healthy growth in the next phase. Investors should distinguish between panic dumping and fundamental deterioration, taking a long-term perspective on the market, and focus on Bitcoin's stabilization above $110,000.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions cautiously.