Crypto Markets Hit by Historic $20 Billion Single-Day Liquidation

The cryptocurrency market is currently struggling following the largest single-day liquidation event in its history, which wiped out at least $20 billion in positions, triggered by President Donald Trump's announcement of a 100% tariff on Chinese imports set for November 1, escalating the U.S.-China trade war. While Bitcoin has stabilized somewhat, altcoins have taken a heavier hit, with some losing up to 90% of their value in minutes during the crash, and the overall altcoin market capitalization falling over 18% since October 10. The liquidation event has significantly impacted market sentiment, with recovery expected to take weeks or even months, compounded by limited liquidity and infrastructure issues on exchanges. In South Africa, crypto trading has ballooned, with significant flows in and out of the country, including a net outflow of about R5 billion annually, often violating exchange controls, and a notable rise in stablecoin trading volumes matching Bitcoin's. The market's volatility is further illustrated by previous large liquidation events driven by policy changes, regulatory actions, and sudden price drops, underscoring the sensitivity of digital assets to global economic and political developments. Successful crypto projects tend to sustain momentum by clearly communicating their value, which contrasts with many startups that quickly fade away due to unclear messaging amid the market's constant buzz.