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A surprise announcement from U.S. President Donald J. Trump has sent shockwaves through global markets — and the crypto industry was hit hardest.
Within just 24 hours, nearly $1 trillion in value vanished from digital asset markets, marking one of the most violent sell-offs in crypto’s history.

⚡ The Trigger: A 100% Tariff on Chinese Exports

In a Truth Social post late Sunday, President Trump announced that the United States would impose a 100% tariff on all Chinese exports, effective November 1, 2025, or sooner “depending on China’s actions.”

The president accused Beijing of restricting exports of materials critical to global technology manufacturing, calling the move “an unprecedented act” that forced America’s hand.

The post — published while U.S. markets were closed and liquidity was thin — caught investors off guard. Within minutes, panic rippled across Asia and Europe before spreading to every major exchange worldwide.

📉 Markets in Freefall

Bitcoin (BTC) plunged from over $125,000 to $104,000, erasing weeks of gains. Ethereum (ETH) fell 11% to $3,878, while major altcoins such as XRP, Dogecoin, and Cardano saw losses of up to 30%.

Data from CoinGlass revealed that over $20 billion in leveraged positions were liquidated in less than a day — the largest single-day liquidation event in crypto’s history. Around 1.6 million traders were forcibly closed out, with most holding long positions in Bitcoin and Ethereum.

Meanwhile, open interest — a key measure of leveraged exposure — plunged 40% overnight, signaling a dramatic reset in speculative trading.

Analysts Call It a “Liquidity-Driven Reset”

Despite the staggering losses, analysts stress that this crash was not a reflection of blockchain fundamentals, but rather a liquidity shock amplified by macroeconomic panic.

“The sell-off was mechanical. It had little to do with crypto’s core fundamentals and everything to do with global market fear,”
said Daniel Parreira, Senior VP for Africa at Thunes, a global payments network.

Others saw it as proof of crypto’s growing entanglement with global macro trends.

“Bitcoin now trades like a high-beta macro asset,”
said Chris Mellor, Head of ETF Product Management at Invesco.
“It reacts to trade policy, inflation data, and central bank signals. That’s not immaturity — that’s integration.”

By Monday morning, Bitcoin had stabilized near $111,800, as traders described the initial plunge as an “overreaction” to Trump’s tariff move.

What This Means for Web3 Founders and Investors

This episode highlights a new reality: crypto markets are now macro markets.
For founders, investors, and builders in the Web3 space, global trade and policy decisions can no longer be ignored as “traditional economy news.”

Here’s what to take away:

• Volatility is policy-driven: Crypto now responds to trade shocks, interest rate signals, and global manufacturing disruptions.
• Leverage remains a weak link: Excessive speculation continues to magnify downturns.
• Integration is maturing: Crypto’s alignment with global financial sentiment signals institutional depth — even if it brings volatility.

As the dust settles, market watchers expect renewed caution in risk exposure and more emphasis on stablecoin liquidity, decentralized finance (DeFi) risk management, and macro-aware portfolio strategies.

Bottom Line:
Trump’s tariff may have been aimed at China — but it just reminded the world how deeply crypto is woven into the global financial fabric.

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🪙 ComeUpStartup’s “Web3 News & Policy” section tracks how global regulation, politics, and innovation collide to shape the next era of blockchain and decentralized finance.