New Delhi, October 11, 2025: Global cryptocurrency markets witnessed their worst single-day collapse in history after U.S. President Donald Trump announced new 100% tariffs on Chinese imports, triggering a wave of panic selling across global financial markets. Within 24 hours, over ₹1.58 lakh crore ($19 billion) worth of crypto positions were liquidated, affecting nearly 1.6 million traders worldwide, according to data from Coinglass.
Analysts described the event as a “black swan moment” for digital assets, one that erased months of gains and raised fears of systemic risk spreading to other financial instruments.
Largest Crypto Liquidation in History
Data compiled by Coinglass and cited by Bloomberg revealed that the crypto market saw ₹1.58 lakh crore worth of leveraged bets wiped out within a single day, marking the largest liquidation event ever recorded.
Of this, nearly ₹58,000 crore worth of positions were wiped out within one hour of trading on October 10, immediately after Trump’s tariff announcement.
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Brian Strugats, head trader at Multicoin Capital, estimated that the total liquidation volume could exceed ₹2.5 lakh crore ($30 billion) once all derivatives and leveraged accounts are factored in.
“The extent of liquidation suggests a systemic failure in managing leverage. Many institutional traders underestimated this volatility,” Strugats said, adding that spillover risks to traditional markets could not be ruled out.
Market Snapshot — October 11, 2025
The overall cryptocurrency market capitalization plunged from ₹358 lakh crore ($4.30 trillion) to ₹312 lakh crore ($3.74 trillion) in just one day — erasing nearly ₹46 lakh crore ($560 billion) in investor wealth.
Total daily trading volumes surged to ₹40.9 lakh crore ($490.23 billion), reflecting widespread panic selling and margin calls across exchanges.
Bitcoin (BTC) fell 8.05% to ₹93.2 lakh ($111,542.91), with a total market capitalization of ₹185 lakh crore ($2.22 trillion).
Trading volumes jumped 145% to ₹15.36 lakh crore ($183.88 billion) as traders rushed to liquidate positions.
Ethereum (ETH) dropped 12.71% to ₹3.15 lakh ($3,778.31), with a market capitalization of ₹37.96 lakh crore ($456.05 billion) and trading volumes rising 148.6% to ₹9.42 lakh crore ($112.75 billion).
Bitcoin continued to dominate the market with a 59.8% share, while Ethereum held 12.2%, and other altcoins made up the remaining 27.9%.
Experts Warn of Further Correction
Caroline Mauron, co-founder of Orbit Markets, said that Bitcoin’s next crucial support level lies near ₹83.5 lakh ($100,000).
“If Bitcoin breaks below ₹83.5 lakh, it could officially mark the end of its three-year bull cycle and potentially trigger a prolonged correction,” she cautioned.
David Jeong, CEO of Tread.fi, described the sell-off as a “black swan event,” adding that excessive leverage in perpetual futures played a key role in the meltdown.
“Many large institutions did not anticipate such extreme volatility. Given how leveraged perpetual futures are structured, even small price drops led to massive liquidations,” Jeong noted.
A “black swan event,” according to Investopedia, is defined as a market crash exceeding six standard deviations, statistically rare but economically devastating.
Market Panic and Systemic Risk
Major global exchanges like Binance, OKX, and Bybit reported widespread auto-liquidations and margin calls. Social media platforms were flooded with traders reporting multi-crore losses within minutes.
Analysts said the crash exposed the fragile leverage structure of the crypto market, where algorithmic and high-frequency trading amplify volatility.
Experts also warned that the contagion might spread to DeFi (Decentralized Finance) platforms and stablecoin liquidity pools, potentially disrupting short-term lending and borrowing within the crypto ecosystem.
Outlook: Temporary Shock or Prolonged Downturn?
Market strategists remain divided on whether this historic crash is a temporary correction or the beginning of a deeper bear cycle.
Some expect recovery once the U.S.-China trade tension stabilizes, while others caution that the psychological impact of this sell-off could take months to reverse.
“If Bitcoin fails to hold ₹83.5 lakh, another wave of liquidations is inevitable,” said a Mumbai-based crypto fund manager. “These next few trading sessions are critical for the global crypto market’s direction.”
Conclusion
The combination of geopolitical uncertainty, excessive leverage, and algorithmic trading has resulted in one of the most dramatic collapses in digital asset history.
With over ₹1.58 lakh crore wiped out and 1.6 million traders impacted, the event has reshaped the narrative around crypto risk management and market discipline.
Whether this episode is remembered as a temporary panic or the start of a new crypto winter, one thing is certain, the age of reckless leverage in digital markets is facing its reckoning.
