Bitcoin’s latest rout accelerated on Friday after the White House unveiled steep new trade measures on China, triggering what data trackers described as the largest wave of forced crypto liquidations on record.
More than $6 billion in positions were flushed in roughly one hour and about $19 billion over a 24 hour stretch as cascading margin calls hit major exchanges.
Bitcoin fell around 8% to near $105,000, with Ethereum sliding by about 10 to 12% as liquidity thinned and bids vanished at key support.
The selling erupted after officials outlined a 100% levy on a broad swath of Chinese imports alongside new restrictions on the export of critical U.S. software.
Some outlets framed the package as amounting to 130% on targeted categories, but the guidance centered on a 100% rate as of Friday.
The policy shock landed squarely on a market that had been leaning long after weeks of strong inflows and rising funding rates, leaving overextended traders exposed when prices turned.
CoinGlass, a derivatives analytics firm, said the wipeout was the largest liquidation event in crypto history as long positions were forced closed across Bitcoin, Ethereum, Solana and other large caps.
An altcoin rally heats up piece of the market had already stretched positioning, which left the tape vulnerable to a macro shock.
Franklin Templeton recently joins forces with Binance to push tokenized assets, a reminder that spot liquidity and exchange depth matter when stress hits.
On the mainstreaming front, Gemini goes public on Nasdaq, reinforcing the view that digital assets are steadily integrating with public markets that integration can amplify shocks when risk cascades through leverage rather than fundamentals.
Large holders and momentum favorites were not spared. Corporate treasuries that built exposure during the bull phase will feel the mark-to-market hit, MicroStrategy recently expands bitcoin trove and remains a bellwether for listed Bitcoin proxies.
On the alt side, sentiment around Solana had been buoyed after Michael Novogratz says Solana could attract sizable capital, yet high-beta tokens typically absorb the heaviest damage when leverage unwinds.
Forced selling is less about a change in long term use cases and more about the plumbing of perpetual futures, funding costs and collateral quality.
The hidden risk crypto holders face without robust security is not only theft but also the temptation to keep too much collateral hot on venues during volatile periods.
The tariff shock collides with an already crowded U.S. regulatory docket, where Congress and agencies continue to debate oversight, market integrity and stablecoin frameworks.
Senate Democrats reveal bold plan for comprehensive rules, while public-market involvement has deepened as Nasdaq doubles down on crypto.
