Black Night in Crypto Markets: 550 Billion Dollars Wiped Out as US-China Trade War Escalates

The global crypto market was shaken to its core after US President Donald Trump announced a 100% additional tariff on Chinese goods. Within hours, more than 550 billion dollars vanished from the market. Leading cryptocurrencies, including Bitcoin, Ethereum and XRP, plummeted, dragging the entire market down in one of the harshest overnight crashes in recent history.

Crypto Market Meltdown

The announcement of new tariffs between the US and China triggered panic selling across crypto exchanges. Investors rushed to liquidate their positions, sending the market into freefall. Bitcoin, which earlier this week hit a record high of $126,000, dropped sharply to $109,000 overnight before recovering slightly to $112,000 by 09:00. It lost more than 7% in the last 24 hours.

Ethereum also took a heavy blow, falling from over $4,750 to around $3,500 overnight, stabilizing at $3,800 in the morning with a 13% daily loss. Ripple, which recently surpassed $3,000, plunged below $1,900 before climbing back to $2,400, losing more than 14% in 24 hours.

Altcoins in Freefall

The damage was even more severe in altcoins. Some major tokens on Binance lost up to 90% of their value, returning to levels not seen since last year. More than $10 billion in leveraged positions were liquidated, affecting around 1.5 million investors. Analysts say the shock has crushed short-term recovery hopes, emphasizing that Trump’s move hit not only crypto but global risk appetite.

Trade War Triggers Market Earthquake

The panic in the markets was fueled by a fresh round of economic tension. After China imposed new restrictions on rare earth exports, Trump retaliated by announcing 100% tariffs on Chinese goods and tighter export controls on critical software, effective November 1. He did not cancel his upcoming meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation Summit in South Korea, but the announcement was enough to send shockwaves through Wall Street. The Dow Jones Industrial Average closed down 1.90% at 45,479.60 points. The S&P 500 lost 2.71%, finishing at 6,552.51 points, while the Nasdaq Composite fell 3.56% to 22,204.43 points.

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