On the night of October 11, the cryptocurrency market experienced a sharp decline, which analysts have already called one of the largest in recent years. Within hours, most coins in the top-100 lost between 30 and 60% of their value. According to CoinDesk, the market liquidated around $16 billion in leveraged positions. This was reported by Fixygen.
What Triggered the Cryptocurrency Market Crash on October 11, 2025
The crash began after the US announced the imposition of a 100% tariff on imports of critical software from China. This move was perceived by the markets as a signal for a new round of trade war between the two countries, which sharply heightened investors' fears. As a result, there were mass sell-offs, panic, and automatic liquidations of positions.
According to CoinGlass, over the past 24 hours, more than $8 billion in long positions were liquidated. Bitcoin fell by 7-8%, Ethereum declined by more than 12%. Altcoins were the most affected: some tokens lost up to 60% of their value while the market tried to stabilize.
Main Reasons for the Rapid Cryptocurrency Market Crash
The main reasons for such a rapid crash were:
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Massive liquidations with leveraged positions. During a sharp move in price, systems automatically close traders' positions, creating an avalanche effect.
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Macroeconomic and geopolitical shocks. The US's decision on tariffs is perceived as an escalation of the trade war with China, which deterred investors from risky assets.
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Correlation with stock markets and the dollar. The strengthening of the dollar and the decline in stock indexes pushed traders to sell crypto.
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Lack of liquidity in altcoins. Under the pressure of sales, even large coins dragged down smaller assets, amplifying the scale of the drop.
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Psychological factor. Market panic led to a chain reaction, where one sale provoked another.
Analysts at Fixygen note that this 'flash-crash' may go down in cryptocurrency history as one of the sharpest. Even after the initial collapse, quotes remain extremely unstable, and investors expect further volatility.
Earlier, we reported that Ukrainians purchased Bitcoin worth $882 million over the year.