What’s Behind Today’s Crypto Market Meltdown?
The post What’s Behind Today’s Crypto Market Meltdown? originally appeared on Coinpedia Fintech News.
The crypto market is in free fall today, erasing more than $400 billion in value as the total capitalization drops to $3.74 trillion. Bitcoin plunged to around $105,000 before staging a mild rebound, while Ethereum tumbled by over 16%, and many altcoins experienced devastating losses—some shedding as much as 80–90% at their lowest points.
In one of 2025’s most brutal sell-offs, nearly $19 billion in leveraged positions were liquidated within hours, leaving the market reeling.
Main Drivers of Today’s Market Collapse
1. U.S.–China Tariff Shockwave
The crash was triggered by an unexpected announcement late Friday from U.S. President Donald Trump, who revealed via Truth Social that a 100% tariff on Chinese imports will take effect November 1. He also hinted at new restrictions on key software exports. The news rattled global financial markets, causing investors to flee from risk assets, including cryptocurrencies.
2. $19 Billion in Liquidations
As panic spread, crypto exchanges saw mass liquidations. More than 1.6 million traders were wiped out, with liquidations totaling $19.31 billion—most from long positions. The largest single liquidation occurred on Hyperliquid, where an ETH-USDT trade worth $203 million was forcefully closed. The cascading effect from automated systems intensified the market drop.
3. Stablecoin USDe Depeg
Further turmoil erupted when USDe, a major algorithmic stablecoin, lost its dollar peg amid institutional sell-offs. The depeg triggered more margin calls and forced liquidations, fueling a deeper market panic.
4. Altcoins Crushed
The correction didn’t stop at Bitcoin. Ethereum, Solana, XRP, Dogecoin, and Shiba Inu were among the hardest hit, sliding between 16% and 40%. Analysts had warned for weeks that altcoins were overextended after rapid capital inflows—and Friday’s shock confirmed those fears.
Long-Term Outlook Remains Upbeat
Despite the bloodbath, many analysts remain optimistic about the broader crypto trend. Global liquidity continues to grow, and Bitcoin ETF inflows remain robust. For the near term, $110,000 is seen as the critical support level for Bitcoin. If the price can hold above it, bulls may soon regain control and lead a recovery phase.