Bitcoin News Today: Crypto's $118K Plunge Mirrors Wall Street's Descent as Trade War Fears Unite Markets
Bitcoin plunged to $118,000 on October 10, 2025, as U.S.-China trade tensions escalated following President Donald Trump's announcement of potential "massive" tariff hikes on Chinese goods. The move triggered a sharp sell-off in crypto markets, with the global market capitalization dropping approximately $125 billion within hours. Over $824 million in leveraged positions were liquidated, according to CoinGlass data, with BitcoinBTC-- accounting for the largest share. EthereumETH-- fell 4.7% to $4,104, while altcoins like SolanaSOL-- and XRPXRP-- dropped more than 2%. The sell-off mirrored broader equity market declines, as the S&P 500 lost $1.2 trillion in value within 40 minutes of Trump's announcement [1].
The liquidation wave was driven by forced unwinding of leveraged long positions, with over $670 million in losses concentrated among long traders. Bitcoin's price briefly dipped below $115,000, while Ethereum and other altcoins faced heightened pressure. Analysts attributed the volatility to renewed fears of a U.S.-China trade war, exacerbated by Trump's recent threats to cancel his planned meeting with Chinese President Xi Jinping and impose retaliatory measures against Beijing's rare earths export controls [1]. The market reaction underscored crypto's growing sensitivity to macroeconomic and geopolitical risks, with institutional traders shifting capital toward traditional safe-haven assets like gold, which surged over 1% to $4,000 per ounce [5].
Cross-market linkages between crypto and traditional finance intensified as traders adopted a "risk-off" posture. The Dow Jones Industrial Average fell 500 points, and the Nasdaq declined 2%, reflecting synchronized declines across asset classes. Crypto-related equities also suffered, with CoinbaseCOIN-- (COIN), Robinhood (HOOD), and MicroStrategy (MSTR) each dropping 3%-6%. The selloff highlighted the interconnectedness of crypto and equities, particularly for firms with significant exposure to digital assets .
Analysts warned that volatility could persist for weeks if trade tensions remain unresolved. Short-term price action for Bitcoin is expected to consolidate within a $115,000–$118,000 range, with altcoins remaining under pressure. However, the market may stabilize if no formal tariff measures are announced, though a potential executive order or Chinese retaliation could extend the downturn by one to two weeks. Long-term risks include a broader macro correction similar to the 2019 trade war or 2022 Fed-driven sell-offs if tensions persist into November [1].
The liquidation event also revealed structural vulnerabilities in leveraged trading. CoinGlass data showed over $600 million in liquidated positions, with Ethereum longs accounting for $235 million. Technical breakdowns in ETH's price, including a failure to hold key support levels, amplified the sell-off. Institutional selling pressure surged in the final hour of trading, with volume spiking six times the session average [3].
Regulatory and macroeconomic factors further compounded market uncertainty. The U.S. government shutdown delayed decisions on crypto legislation, including a spot ETF, while rising inflation expectations and potential rate cuts from the Federal Reserve added to investor caution. Despite the short-term turmoil, some analysts argued the drop could represent a healthy retracement in an otherwise strong bull market. Bitcoin remains up over 30% year-to-date, driven by inflows into spot ETFs and expectations of Fed rate cuts .
The trade war-driven volatility reinforced crypto's role as both a risk asset and a potential hedge against economic instability. Historical patterns during past trade wars showed similar sell-offs followed by rebounds as Bitcoin's perceived value preservation narrative gained traction. However, immediate risks include further capital flight to traditional safe havens and prolonged uncertainty in U.S.-China relations.
Comentarios
Aún no hay comentarios