A violent crypto market sell-off wiped out over $7.44 billion in trading positions within the span of an hour, sending shockwaves through the digital asset ecosystem and forcing major crypto trading exchanges, including Binance, into emergency mode.
The development follows U.S. President Donald Trump's imposition of an additional 100% tariff on China.
BTC slipped under $114,000 before the decline deepened, wiping $250 billion from total crypto market capitalization.
Related: Massive liquidations hit Bitcoin, XRP after Trump's 100% China tariff
Binance under strain
Shortly after the market crash, Binance, the world's largest crypto exchange by trading volume, acknowledged severe strain on its systems, issuing an official post on X.
As of 8:06PM, Binance posted that all of its services have been restored and are progressively returning to normal. "We are continuing to monitor the situation to ensure all operations continue running smoothly. We appreciate everyone's understanding."
Binance claimed that its team is actively monitoring the situation and working to resolve it. It specifically added that user funds are safe in a bid to curb market chaos.
Related: Market reels after Trump's new China tariffs
Coinbase suffers latency
Coinbase, the largest crypto exchange in the U.S., acknowledged latency or degraded performance during transactions. It assured the users that funds are safe.
The exchange said it is investigating the issue.
As of 7:06 PM ET Coinbase' support desk on X posted that a fix has been implemented and the issue has been resolved.
Trump's China claims trigger sharp sell-off
Calling China "hostile," Trump claimed on a Truth Social post that China has been sending letters to multiple countries, wanting to impose "export controls" on every element of production.
BTC has fallen by 6% in 24 hours to claim the price point above $114,000. ETH also dropped by 11% to trade around $3,000 at the time of writing.
The overall crypto market cap has tumbled by 9%, bringing the sector's valuation to $3.76 trillion at press time.
This story was originally reported by TheStreet on Oct 10, 2025, where it first appeared in the Business News section. Add TheStreet as a Preferred Source by clicking here.
