Bitcoin has suddenly fallen sharply, with a “flash crash” wiping $12,000 from the bitcoin price in a matter of minutes after a “cascade” warning.
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The bitcoin price dropped to under $107,000, down from a high of $123,000 yesterday and a bitcoin price all-time high of $126,000 earlier this week, with other top ten cryptocurrencies ethereum, XRP, BNB and solana suffering greater declines that saw $500 billion wiped from the combined crypto market.
Now, as fears swirl over the future of the U.S. dollar, traders are bracing for further declines as the bitcoin price crash suddenly accelerates amid uncertainty over U.S. president Donald Trump’s fresh China tariffs.
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U.S. president Donald Trump has embraced bitcoin and crypto, helping the bitcoin price to soar along with the wider ethereum, XRP, BNB, solana and crypto market.
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“A flash crash of liquidations saw almost $7 billion wiped across all markets within one hour, with $5.5 billion coming from longs,” Sean Dawson, head of research at leading onchain options platform Derive.xyz, wrote in emailed comments.
“Bitcoin and ethereum accounted for $3.3 billion of those liquidations. In total, almost $9.6 billion in positions have been liquidated over the past 24 hours, marking the largest single-day wipeout in crypto history.”
The sudden sell-off was sparked by Trump announcing a 100% tariff on China imports, accusing the country of taking an “extraordinarily aggressive position” on trade.
“Markets are reeling after Trump’s surprise China tariff deadline reignited volatility, driving bitcoin toward $100,000 and triggering one of the largest liquidation events in crypto history,” 10x Research analysts led by chief executive Markus Thielen wrote in an emailed note, that sounded a note of optimism amongst the carnage.
“With $8 billion in forced liquidations, altcoins collapsing multiple times more than bitcoin, and funding rates turning deeply negative, the setup is both chaotic—and full of opportunity.”
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The bitcoin price has rocketed higher this year, helped by U.S. president Donald Trump’s support, lifting the combined bitcoin, ethereum, XRP, solana and BNB market to all-time highs.
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The bitcoin price and wider crypto market flash crash comes amid macro economic turmoil, with traders watching for any further sign that a further crash could be brewing.
“Bitcoin dominance above 60% signals a new structural phase, while short-dated volatility above 50% opens the door for some of the most attractive option trades in months,” 10x Research analysts added. “Yet beneath the headlines, a bigger macro story is unfolding—oil below $60, Treasury yields breaking lower, and the S&P 500 showing its first technical cracks since spring. Will Trump’s next tweet spark relief—or fuel another selloff?”