New York, October 12, 2025 – The cryptocurrency market suffered its steepest single-day drop in recent history, erasing billions in investor value as panic selling gripped traders worldwide. Bitcoin, the sector’s bellwether, tumbled below $110,000 for the first time in months, while Ethereum and other majors shed over 20% in mere hours, according to data from CoinMarketCap and Bloomberg.
The trigger? Fresh U.S. tariffs on Chinese tech imports, announced by the Biden administration late Friday, spooked global markets and spilled over into crypto. Fox News reported that the measures—aimed at curbing Beijing’s dominance in semiconductors and EVs—ignited fears of a broader trade war, prompting a flight to safety. Joshua Duckett, director at Crypto Financial Investigations, told Reuters the fallout was amplified by leveraged trading, where borrowed funds magnify gains and losses. “Investors were forced to liquidate positions en masse, creating a cascading sell-off,” Duckett explained. “Crypto’s 24/7 nature doubles the damage—unlike stocks, reactions don’t pause overnight.”
The rout saw $45 billion vaporized across the top 100 coins by midday UTC, with altcoins like Solana and Cardano hit hardest, plunging 25-30%. Trading volumes spiked 150% on exchanges like Binance and Coinbase, but signs of stabilization emerged by evening, with Bitcoin rebounding 3% to $108,500 as bargain hunters stepped in.
Duckett cautioned that the next 24 hours are pivotal: “If no fresh negative headlines hit, we could see a rebound. But volatility remains sky-high.” He urged retail investors to “only risk what you can afford to lose” and conduct exhaustive due diligence before diving in—echoing regulators’ warnings amid the sector’s wild swings.
As markets eye Monday’s open, the crash underscores crypto’s ties to macro risks, reminding even bulls that fortunes can flip in a flash.
