Bitcoin Crashes Below $105,000 as Trump’s China Tariffs Ignite $19 Billion Crypto Meltdown

Bitcoin tumbled over 10% in a single day, dropping below $105,000 and triggering more than $19 billion in liquidations amid panic over new US-China trade tariffs.

The cryptocurrency market was rocked by one of its most violent crashes in recent history as Bitcoin plunged from its week-high of $126,000 to a shocking low under $105,000, before a rapid rebound to $113,000. The catalyst was US President Donald Trump's sudden announcement of 100% tariffs on Chinese tech imports, reigniting fears of a trade war and sending shockwaves throughout global financial markets.​

In just 24 hours, more than $19 billion in leveraged crypto positions were liquidated, with Bitcoin alone seeing a decline of over 12%. Ethereum, BNB, XRP, Solana, and other leading digital coins also crashed by 11% to 21%, marking one of the largest single-day drops since the infamous FTX collapse and the Covid lockdown crash of 2020.​

Market analysts described the event as a “perfect storm” of geopolitical tension and structural fragility. President Trump's move to impose steep tariffs, coupled with additional export controls, spooked investors who immediately shifted funds from volatile assets like Bitcoin into stablecoins and safer havens. Some even compared the scale of the shakeout to financial market crashes in previous years, citing the heightened vulnerability of crypto markets due to overreliance on leverage and unregulated trading platforms.​

As the S&P 500 also reeled, Bitcoin’s close correlation with equity markets amplified the pain. Retail and institutional investors exited en masse, setting off algorithmic panic selling that briefly sent Bitcoin below the $101,000 threshold. CoinGlass reported over 1.6 million traders liquidated in a single day, with some whales allegedly benefiting from large-scale short positions, fueling speculation about insider trading.​

Despite the carnage, some believe that such deep corrections often reset the market cycle. Experts are closely watching ETF inflows and institutional investment behavior to gauge when recovery might begin. As Trump’s tariffs go into effect on November 1, markets remain on high alert for further volatility, and a sustained break below $100,000 could trigger another wave of selling. However, historical trends suggest that Bitcoin’s worst drawdowns have often paved the way for dramatic recoveries and bull runs in subsequent months.

Read also: https://tradertrendspot.blogspot.com/2025/09/top-5-bullish-candlestick-patterns.html

Disclaimer

The information provided in this article is for general informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile and past performance is not indicative of future results. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The publisher is not responsible for any losses or damages that may arise from the use of the information presented here.