The cryptocurrency market experienced a severe selloff following U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, with prices plunging more than 10% across the sector. Forced liquidations surged from an estimated $10 billion to nearly $20 billion as overleveraged positions cascaded out of control, marking one of the most intense selloffs of the year.
Despite the chaos, market infrastructure held up remarkably well. Trading platforms that previously struggled under smaller stress tests operated with minimal disruption, processing massive order flows without major interruptions. Open interest was effectively halved, yet liquidity and technology proved robust, highlighting the ecosystem's evolution since earlier cycles.
Bitcoin and Ethereum stood out for their resilience. While many small-cap tokens effectively vanished, Bitcoin's dip was relatively mild, dropping 15% at its lowest point before rebounding to close the day down just 8%. Ethereum mirrored this stability, reinforcing its role as a key anchor in the turbulent landscape.
TD Cowen analysts emphasized the market's progress, noting that "the system absorbed the blow" and maintained a strongly optimistic outlook. The firm reiterated its projection that Bitcoin could reach $141,000 by December, supported by continued institutional inflows and growing confidence in the market's structural integrity.
Beyond trading, global adoption continues to expand unabated. In Japan, the number of registered digital asset accounts has exceeded 7.9 million, a fourfold increase, signaling cryptocurrency's deepening reach into mainstream finance. The $19 billion liquidation wave, while painful, served as a stress test that the industry passed, demonstrating enhanced coordination and strength in core infrastructure.
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