Trump's tariff blunder triggers $19 billion liquidation: Bitcoin mining stocks surge double digits in a single day.

Trump announced an emergency retraction of his statement after imposing a 100% tariff on China, confirming it stemmed from a misunderstanding of export controls. Bitcoin mining stocks rebounded strongly on October 13, with Bitfarms and Cipher Mining leading the way with double-digit gains, quickly recovering from last week's record $19 billion liquidation in Crypto Assets.

Trump's tariff blunder triggers the largest liquidation in history

On October 10, a sudden market crash occurred, triggered by President Trump’s threatening remarks about imposing a 100% tariff on China on Truth Social. This news raised concerns about an escalation in the trade war, leading to a sharp decline in both the stock market and the Crypto Assets market, with Bitcoin Mining stocks being the hardest hit.

· Trump Tariff Statement Timeline

October 10 (Friday):

Trump announced a plan to impose a 100% tariff on Chinese imported products.

The market interprets it as a signal for the restart of the trade war.

The cryptocurrency market has seen the largest liquidation event in history, with approximately $19 billion in leveraged positions wiped out.

Bitcoin mining stocks follow the cryptocurrency market crash

Weekend Clarification:

Analysts pointed out that Trump's remarks are based on a misunderstanding of China's new export measures.

On October 10, China announced an expansion of export restrictions on rare earth minerals, rather than new tariffs targeting the United States.

Trump's follow-up response: In a subsequent post on Truth Social, Trump wrote, “Don't worry about China, everything will be fine.”

The Treasury Secretary officially clarified: U.S. Treasury Secretary Scott Bessent later clarified that the proposal to impose a 100% tariff on China is “not necessary,” formally putting an end to Trump's tariff threat.

Market commentator The Kobeissi Letter wrote: “This confirms our view that President Trump misunderstood the export controls announced on October 10.”

Bitcoin Mining stocks strongly rebound

After the clarification of Trump's tariff confusion, Bitcoin mining-related stocks showed remarkable resilience on Monday, rebounding significantly from Friday's flash crash.

· Leading stocks performance

Two-Digit Pump Leaders:

Bit Deer Recovery: Bit Deer is one of the Bitcoin mining companies that experienced a stock price crash on Friday, but after Trump's shift in tariff stance, the stock price has also rebounded, indicating a systematic rebound across the entire sector.

· Why can Bitcoin Mining stocks rebound quickly?

Fundamentals remain intact: Trump's tariff threat has been proven to be a misjudgment, and actual trade policies have not changed. The operating environment and cost structure of Bitcoin mining companies have not been materially affected.

Bitcoin price stability: Despite experiencing the largest liquidation in history, the Bitcoin price has maintained relative resilience, providing solid support for Bitcoin mining stocks. On Monday, the trading price of Bitcoin was around 115,300 USD, with limited decline.

Leverage washout effect: Last week's severe liquidation cleared out over-leveraged positions, reducing market vulnerability and creating a healthier foundation for subsequent rebound.

In-depth Analysis of the 19 Billion Dollar Liquidation Event

Despite the significant sell-off of Bitcoin mining-related stocks on Friday, the turbulence of the digital assets themselves is much more severe. In terms of US dollars, Friday's flash crash is the largest liquidation event in the history of Crypto Assets — even surpassing the collapse of FTX.

· Settlement Distribution and Scale

Exchange Clearing Data:

Hyperliquid: About $10.3 billion in positions have been wiped out, accounting for roughly half of the total liquidation volume.

Asset performance differences: Bitcoin shows relative resilience compared to altcoins, while altcoins suffer more severe losses from peak to trough. This difference is also reflected in the relative toughness of Bitcoin mining stocks, as they are directly linked to Bitcoin prices.

· Exchange Disputes and Systematic Issues

Crypto exchanges questioned whether some platforms experienced issues during this crash:

1. System speed slows down

2. Asset Pricing Error

3. Failure to maintain sufficient compliance controls

Large CEX Faces Additional Scrutiny:

Reports have indicated that the prices of multiple tokens once fell to zero, raising questions about the stability of large CEX systems. The exchange later stated that this anomaly was caused by a user interface display error affecting certain trading pairs.

USDe Decoupling Incident:

Large CEXs are also suspected of exploiting vulnerabilities during the same period that caused Ethereum's synthetic dollar USDe to lose its peg to the US dollar. Guy Young, the founder of Ethena Labs, later clarified: “The severe price discrepancy was limited to a single venue that cited the oracle index on its own order book, rather than the deepest liquidity pool, and faced deposit and withdrawal issues during the event, which prevented market makers from completing the closed loop.”

This indicates that the decoupling is not related to the minting or redemption process of USDe itself, but rather the isolation issue of large CEX.

Trump Tariffs and the Long-term Relationship with Bitcoin Mining

This incident with Trump's tariffs also reminds investors to pay attention to the potential impact of trade policies on the Bitcoin mining industry.

· The Actual Impact of Tariff Policies

If Trump's tariffs are actually implemented, the high tariffs on Chinese imports will directly affect:

1. The import cost of ASIC mining machines (main manufacturers concentrated in China)

2. Power equipment and cooling system components

3. Construction materials

In the long term, ongoing trade friction may drive:

1. The manufacturing of Bitcoin Mining equipment is diversified.

2. Development of North American Local Supply Chain

3. Adjustment of Mining Site Selection Strategy

However, this incident proves that the market's overreaction to Trump's tariffs is far greater than the actual impact of the policy. Investors need to distinguish between short-term emotional fluctuations and long-term fundamental changes.

Investment Insights on Bitcoin Mining Sector

Last week's crash and this week's rebound provide three important lessons for Bitcoin mining stock investors:

Volatility is the norm: Bitcoin mining stocks are highly correlated with the crypto market, with $19 billion in liquidations, such extreme events could happen at any time.

Policy Misjudgment Risk: Political events such as Trump tariffs can easily be misread by the market, so maintaining calm judgment is more important than following the panic.

Fundamentals will ultimately dominate: After short-term fluctuations, the stability of Bitcoin prices, the efficiency of mining costs, and the quality of corporate operations are the key factors determining the long-term value of Bitcoin mining stocks.

Monitoring Key Indicators

Bitcoin Mining stock investors should track:

1. Bitcoin price trend (directly affects Mining profits)

2. Difficulty Adjustment (Reflecting Competition Intensity)

3. Changes in energy costs (maximum operating expenses)

4. Mining machine efficiency upgrade cycle

5. Substantial progress in trade policy (rather than rhetoric)

Under the uncertainty of Trump's tariffs and other policies, diversification and risk management become even more important.

Conclusion: Opportunities in Resilience

The $19 billion liquidation caused by the Trump tariff blunder, along with the rapid rebound of Bitcoin mining stocks that followed, showcases the dual characteristics of this industry: high volatility and resilience.

For investors, this incident provides valuable experience: it is crucial to distinguish between noise and substantive impact when policy news triggers market panic. The rebound of Bitcoin mining stocks on Monday proves that when the fundamentals are not damaged, the market will ultimately correct its excessive reactions.

As the Bitcoin ecosystem continues to mature, the Bitcoin mining industry will continue to be impacted by macro events. However, those companies with cost advantages, operational efficiency, and financial stability will ultimately stand out amidst the volatility.