The global cryptocurrency market has wiped out about $410 billion in market capitalization over the past 24 hours, dropping from $4.15 trillion to a current total value of $3.74 trillion. 

The selloff, one of the steepest in 2025, followed a surge in macroeconomic and geopolitical uncertainty that sent investors fleeing from risk assets.

At the same time, market data shows that more than $5.6 billion in leveraged long positions were liquidated within a single day. 

Bitcoin (BTC) fell over 8% to $111,208, while Ethereum (ETH) dropped 13% to $3,765, extending a week-long correction in both assets. Among major altcoins, BNB declined 14% to $1,087, XRP lost 14% to $2.42, and Solana (SOL) slid 16% to $183.

The market downturn followed the United States’ announcement of 100% tariffs on Chinese technology imports, reigniting fears of a prolonged trade conflict. 

Renewed trade war triggers flight from crypto 

Sentiment deteriorated further after President Donald Trump confirmed additional tariffs on Chinese goods and new export restrictions on software. The announcement came hours after China’s Ministry of Commerce said exporters would require licenses for goods containing more than 0.1% of rare earth materials sourced from China.

The move rattled global markets, and reports suggesting Trump had canceled a meeting with Chinese President Xi Jinping added to the uncertainty. He later clarified that talks could resume if Beijing reverses its export policy by November 1. 

The escalation triggered a global flight to safety, strengthening the U.S. dollar index (DXY) above 107, its highest level since early 2024.

Regulatory uncertainty compounded the decline after the Securities Exchange Commission (SEC) postponed approvals for several spot exchange-traded funds (ETF), including Solana and XRP. 

The delays, linked to the ongoing government shutdown, froze potential institutional inflows that had fueled optimism earlier in the quarter.