The cryptocurrency market suffered a severe setback on Friday after the U.S. administration announced a sweeping 100% tariff on Chinese imports. Bitcoin experienced a sharp flash crash, sliding beneath the $110,000 threshold in mere seconds as panic gripped traders.
Sudden Sell-Off Shakes Markets
News of the tariff hike sparked an immediate rush to the exit. Bitcoin dropped from around $118,000 to $109,500 in a volatile few minutes, recording its largest intraday decline in half a year. Major altcoins followed suit, with Ether down more than 10% and smaller tokens facing double-digit losses.
Leverage Liquidations Reach $6.5 Billion
Highly leveraged positions unraveled under the pressure. Derivatives exchanges reported approximately $6.5 billion in long bets forcibly closed during the downturn. Bitcoin perpetual futures bore the brunt of margin calls, intensifying the selling pressure and driving prices into freefall.
On-Chain Data Reflects Flight to Safety
Blockchain analytics highlighted a sharp increase in outflows to cold wallets as large holders sought to secure assets off exchanges. Meanwhile, stablecoin balances dipped as traders redeemed coins for fiat, signaling a widespread risk-off mindset. Network activity briefly spiked as stop-loss orders executed across multiple venues.
Analyst Insights and Outlook
Market strategists pointed to a combination of geopolitical shock and crowded long trades as the trigger. With Bitcoin’s next support zone near $105,000, attention is now fixed on whether bulls will defend that level. Ether’s critical floor sits around $3,500, and its reaction could influence broader sentiment in the days ahead.