$19bn cryptocurrency crash reveals risks of leverage boom.

The introduction of new tariffs on Chinese imports by the US resulted in a sudden and significant drop in cryptocurrency prices, commonly referred to as a flash crash, affecting leveraged traders. The announcement of a 100% tariff by US President Donald Trump caused major cryptocurrencies like Bitcoin and Ether to plummet, leading to a wave of liquidations totaling over $19 billion. This event shocked many, including pseudonymous crypto influencer Evanss6, who noted the rapid and severe nature of the crash. Within thirty minutes of the announcement, Bitcoin dropped by approximately 10%, briefly falling below $105,000, while Ether fell by over 12% to $3,500. Other cryptocurrencies such as Solana, Hyperliquid, and Sui also experienced significant declines. The crash occurred amidst a surge in leveraged crypto trading, particularly notable with the rise of the decentralized exchange protocol Hyperliquid within the cryptocurrency space. The substantial growth in open interest for major cryptocurrencies like Ether and Bitcoin over the year further highlights the volatile nature of the crypto market. Additionally, the crash seemed to be triggered by China's announcement of heightened restrictions on rare earth element exports, prompting Trump's response of imposing additional tariffs on Chinese goods. Despite the turmoil and the adverse effects on leveraged traders, some investors remain confident in the long-term stability of the market.