The world of digital money, or cryptocurrencies, just saw its worst day ever. On October 10, 2025, prices crashed hard after US President Donald Trump announced a 100% tax on all goods coming from China. This move, set to start on November 1, wiped out over $19 billion in trader bets gone wrong. More than 1.6 million people who hoped prices would rise lost their money in what experts call the biggest wipeout in crypto history.
Bitcoin, the top digital coin, dropped 10% to around $107,000, while Ethereum fell 15% to $3,778. The whole crypto market lost nearly $200 billion in value in just hours, pushing the total size down from $4.25 trillion to $4.05 trillion.
Trump’s announcement came as a shock. He canceled a planned meeting with China’s leader Xi Jinping and called China’s new rules on selling rare earth metals “very aggressive.” These metals are key for making tech like computer chips and mining gear for cryptos.
Trump said the US would hit back with the huge tariff and its own limits on selling important software to China. This sparked fears of a bigger trade fight between the two countries, which could hurt global business and make people pull money from risky things like cryptos.
The fall started fast. Right after Trump’s post on Truth Social, trading went wild. Over $7 billion in bets vanished in the first hour, and $9.4 billion by the end of the day. Most losses came from people who borrowed money to buy more crypto, hoping for quick gains. When prices dropped, their trades got shut down automatically, adding to the chaos.
Bitcoin hit a low of $102,000 on some exchanges, its biggest one-day drop since April. Other coins like Solana and XRP fell even harder, down 14% to 30%.
This isn’t the first time Trump’s words shook markets. Back in April, his tariff talks caused a $125 billion dip in crypto values. Now, with the trade war heating up again, experts worry it could slow down tech growth, including things like AI and blockchain that cryptos depend on. China’s controls on rare earths could make mining hardware scarcer and pricier, hitting small traders the hardest.
As of October 11 morning, Bitcoin was still down 8% at $111,543, with trading volume jumping 145% as people sold in a rush. Ethereum was off 13% at $3,778. Some say this could be a short panic, with prices bouncing back if talks calm down. But others fear more drops if the tariffs really kick in.
For everyday folks holding cryptos, it’s a tough reminder that these digital assets can swing wild with world news. If you’re in it, experts say stay calm and don’t sell low— but always know the risks. Keep an eye on Trump’s next moves; they could shake things up again soon.