Biggest Crypto Liquidation in History: $19.16B Wiped Out as Bitcoin Plunges 7.7% Amid US–China Trade Clash

11. Oct 2025 Posted by Laurent C. on News

The cryptocurrency market has just endured its most devastating 24-hour crash in history. Bitcoin (BTC) plunged 7.7% in the past day, extending losses to 8.4% over the week and 1.7% over the month. Earlier this October, BTC had soared to a new all-time high of $126,080, fueling hopes of a sustained bull run. However, that optimism has vanished almost overnight.

According to data from CoinGlass, the crypto market has witnessed $19.16 billion in liquidations within the past 24 hours — marking the biggest liquidation event in the history of digital assets. To put that in perspective:

  • COVID Crash (March 2020): $1.2 billion liquidated

  • FTX Collapse (November 2022): $1.6 billion liquidated

  • Today’s Crash (October 2025): $19.16 billion liquidated

This staggering figure represents nearly 20 times the scale of the COVID-era crash, underscoring the intensity of the market’s current turmoil.

Trade War Fallout

Analysts point to escalating tensions between the United States and China as the key trigger behind the sudden market reversal. President Trump’s administration recently imposed 100% tariffs on Chinese exports and introduced sweeping export controls targeting “any and all critical software.” The move was a direct response to Beijing’s decision to restrict exports of rare earth minerals, materials vital to global technology production.

The resulting economic uncertainty has rippled across financial markets, driving investors away from risk assets such as cryptocurrencies. “Traders are retreating to safety,” one analyst noted. “With global supply chains and trade policies in flux, crypto is being treated more like a speculative liability than a hedge.”

October’s Unwelcome Surprise

Historically, October has been a bullish month for Bitcoin and the broader crypto market. Yet this year, that trend has been shattered. Of the $19.31 billion in total liquidations, roughly $16.6 billion came from long positions, indicating that the majority of investors were caught off guard by the sudden downturn.

What’s Next for Crypto?

While investor sentiment remains fragile, some analysts see a potential turnaround on the horizon. The Federal Reserve is widely expected to announce another interest rate cut following its next meeting. If borrowing becomes cheaper, liquidity could return to risk markets, setting the stage for a potential recovery in digital assets.

For now, however, the message is clear: the cryptocurrency market has just experienced a historic reset, and risk management — not speculation — is once again the name of the game.