After Trump imposed 100% China tariffs, the crypto crashed market significantly $19 billion in leveraged trades were wiped out in just a few hours. This wiped out 1.6 million traders and spread panic across exchanges worldwide.
Nearly $800 billion in market value vanished in just a few hours the largest drop since the 2022 crash. But half of the loss has now been recovered. Analysts say this rapid decline could mark a new beginning for the market one where crypto will once again show stable and strong growth.
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Trump Trigger Global Sell-Off – Crypto Crash
The crypto market crashed badly this weekend, driven primarily by U.S. President Donald Trump’s announcement that he would impose 100% tariffs on Chinese tech exports. Following this announcement, people worldwide began withdrawing money from risky investments.
This sudden policy change unloaded $19 billion in leveraged trades, triggering panic selling and a sharp drop in prices on major crypto exchanges. Technical breakdowns and public fear pushed the market even lower as key support levels were breached.
The entire crypto market cap plummeted 20% in just half a day from $4.12 trillion to $3.3 trillion wiping away over $800 billion in value.
According to the financial research outlet “The Kobeissi Letter,” this was all akin to the “Trump Tariff Playbook” that was also seen in early 2025.
According to them, Trump first issues a mild warning of new tariffs, causing the market to fall slightly. Then he suddenly announces larger tariffs, causing the market to fall sharply. Dip buyers then return to the market, but prices fall again a few days later—that’s when large investors start buying.
Trump then reinforces his stance on Friday, China or the targeted country responds on Saturday, and on Sunday Trump writes that a “solution is underway.”
The market rises slightly on Sunday night, but gains are erased again by Monday morning until Treasury officials reassure the public. A few weeks later, Trump hints at a trade deal, and when the deal is officially announced, the market reaches new highs again.
According to the Kobeissi letter, “Our strong performance has come from following this playbook when trade tensions arise.”
Rapid Recovery a Reset Progress
By Monday, the crypto market had recovered nearly $600 billion from Friday’s crash, bringing the total market value back to $3.89 trillion.
Adam Kobeissi, founder of Kobeissi Letter, said, “This was one of the largest and fastest wealth transfers in crypto history,” and described the correction as “game over.”
While small investors have yet to recover from their losses, analysts say this was a necessary reset for the market eliminating excess leverage, restoring liquidity, and creating a strong base for the next rally.
Altseason on Hold For Now – Crypto Crash
Market strategist and investor Ted Pillows said that altcoin season hadn’t even begun before the crash, as altcoin market cap hadn’t yet reached its 2021 peak.
Now that liquidity is returning, he says a new phase is about to begin.
He said, “In the next few days or weeks, you’ll have the opportunity to buy the dips and then the real altseason will begin.”
Why This Matters – Crypto Crash
The weekend crash served as a stark reminder of how major policy changes can shake the entire digital asset market in just hours.
But experts say this wasn’t a full-blown collapse rather, a corrective reset. The leverage flush reduced speculative trading, paving the way for healthier and more stable price movements in the market.
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People Also Ask – Crypto Crash:
Why did crypto crash this weekend?
The crypto market crash began this weekend when U.S. President Donald Trump announced 100% tariffs on Chinese tech exports. This news shook markets worldwide, and people began selling their crypto assets out of fear.
What is a leverage flush and why is it important?
A leverage flush occurs when traders’ high-risk or borrowed positions are forcibly closed. This process can be painful, but it is healthy for the market—as it removes excess risk, restores liquidity, and creates a strong base for future rallies.
What was the role of institutional investors during the crypto crash?
When a market crash occurs, small traders tend to “dip buy” first, but when the market declines again, large institutional investors quietly begin buying. This pattern has been observed in previous market shocks, and they similarly took the opportunity to accumulate this time as well.
