- Bitcoin’s price fell rapidly, dropping by $12,000 within minutes during a “flash crash.”
- Bitcoin dropped below $107,000 after reaching an all-time high of $126,000 earlier in the week.
- The downturn erased $500 billion from the overall cryptocurrency market, affecting major coins like Ethereum, XRP, BNB, and Solana.
- Analysts linked the crash to U.S. President Donald Trump announcing a 100% tariff on Chinese imports.
- Over $9.6 billion in trading positions were liquidated in 24 hours, marking the largest single-day crypto wipeout to date.
The price of bitcoin experienced a sudden and sharp decline, with a “flash crash” wiping $12,000 from its value in just minutes. The drop came amid rapid market movements in the cryptocurrency sector.
Bitcoin’s price fell to under $107,000, down from a high of $123,000 the previous day and an all-time high of $126,000 earlier the same week. Other leading cryptocurrencies including Ethereum, XRP, BNB, and Solana also suffered larger drops, resulting in a $500 billion loss from the total crypto market capitalization.
Sean Dawson, head of research at on-chain options platform Derive.xyz, stated in an email that “a flash crash of liquidations saw almost $7 billion wiped across all markets within one hour, with $5.5 billion coming from longs.” He added that “Bitcoin and ethereum accounted for $3.3 billion of those liquidations. In total, almost $9.6 billion in positions have been liquidated over the past 24 hours, marking the largest single-day wipeout in crypto history.”
The catalyst for the decline was the announcement by President Donald Trump of a 100% tariff on imports from China, which he described as a response to an “extraordinarily aggressive position” on trade. According to an emailed note from 10x Research CEO Markus Thielen and team, “Markets are reeling after Trump’s surprise China tariff deadline reignited volatility, driving bitcoin toward $100,000 and triggering one of the largest liquidation events in crypto history.” They noted that altcoins—cryptocurrencies other than bitcoin—collapsed more steeply and that funding rates turned deeply negative, signaling instability and potential for future volatility.
The crypto market’s volatility occurred amid widespread economic uncertainty. The same 10x Research note observed indicators such as the price of oil falling below $60 per barrel, lower Treasury yields, and “the S&P 500 showing its first technical cracks since spring.” The firm stated, “Bitcoin dominance above 60% signals a new structural phase, while short-dated volatility above 50% opens the door for some of the most attractive option trades in months.”
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