What happened to the crypto market today? The truth behind the $400 billion wiped out

This drop is pretty brutal.

On Friday, with just one sentence, Trump set off the entire internet—starting November 1, the US will impose a 100% tariff on Chinese imports. As soon as this news broke, global financial markets instantly went risk-off, with crypto bearing the brunt.

The numbers are painful:

• Total market cap dropped from $3.76 trillion to $3.74 trillion, evaporating over $400 billion
• BTC once fell to $105,000 (it was even higher before)
• ETH plunged over 16%
• Some altcoins dropped as much as 80-90%

The craziest part was the liquidation wave—over 1.6 million traders were liquidated within 24 hours, with total liquidations reaching $19.3 billion, including $16.8 billion in long positions. On Hyperliquid, an ETH-USDT position was directly liquidated for $203 million. In short, the leverage blowup triggered a stampede that drove prices down even further.

To make matters worse: The stablecoin USDe also depegged (failed to hold $1), which further fueled panic selling on the platforms.

But looking further ahead, analysts aren’t too pessimistic—global liquidity is still expanding, and BTC ETFs continue to see net inflows. The key is whether BTC can hold the $110,000 level. If it does, the rebound narrative could return.