The global cryptocurrency market suffered its worst single-day crash in history after U.S. President Donald Trump’s shock announcement of 100% tariffs on Chinese imports sent tremors through financial systems worldwide. Within hours, a staggering Rs 1.58 lakh crore ($19 billion) in crypto positions were liquidated — impacting over 1.6 million traders, according to data from Coinglass.
Experts are calling it a “Black Swan event” — a rare and unpredictable collapse that has erased months of market gains and raised new fears of systemic risk spilling into traditional finance.
Largest Liquidation in Crypto History
Data compiled by Coinglass and cited by Bloomberg revealed that nearly Rs 58,000 crore worth of positions were wiped out within one hour of the announcement on October 10.
Brian Strugats, head trader at Multicoin Capital, warned that the final liquidation figure could cross Rs 2.5 lakh crore ($30 billion) once leveraged derivatives are fully accounted for.
“This reflects a systemic failure in leverage management,” Strugats said. “Institutional traders severely underestimated the volatility this policy shock would unleash.”
Market Snapshot – October 11, 2025
The total crypto market capitalization plunged from Rs 358 lakh crore ($4.30 trillion) to Rs 312 lakh crore ($3.74 trillion) — wiping out Rs 46 lakh crore ($560 billion) in investor wealth in a single day.
Bitcoin maintained a 59.8% market dominance, followed by Ethereum at 12.2%, with altcoins contributing 27.9%.
Analysts Warn of Further Pain
Caroline Mauron, co-founder of Orbit Markets, cautioned that Bitcoin faces a critical support level near Rs 83.5 lakh ($100,000).
“If Bitcoin slips below this threshold, it could signal the end of its three-year bull cycle,” she said.
David Jeong, CEO of Tread.fi, blamed excessive leverage in perpetual futures for amplifying the crisis:
“Even small dips turned catastrophic due to overleveraged positions. This was a classic case of greed meeting volatility.”
Shockwaves Across Global Exchanges
Top exchanges like Binance, OKX, and Bybit reported widespread auto-liquidations and margin call cascades, as traders across Asia and Europe faced instant losses.
Social media was flooded with screenshots of traders losing crores in seconds, sparking debates on the fragility of the crypto ecosystem.
Analysts fear the impact could extend to DeFi platforms and stablecoin liquidity pools, disrupting short-term lending and borrowing markets that underpin much of crypto finance.
Temporary Correction or the Start of Crypto Winter?
While some experts see this as a short-term shock that could stabilize once U.S.–China tensions ease, others believe the market could be entering a prolonged bear phase.
A Mumbai-based fund manager warned,
“If Bitcoin fails to hold Rs 83.5 lakh, another wave of forced selling is inevitable. The next few sessions are make-or-break for crypto’s future.”
A Reckoning for Digital Assets
This unprecedented Rs 1.58 lakh crore wipeout underscores the dangers of unchecked leverage, algorithmic trading, and geopolitical uncertainty in digital markets.
Whether remembered as a temporary panic or the dawn of a new “Crypto Winter 2.0,” this crash has sent one clear message:
The era of reckless trading in the crypto world may finally be coming to an end.
