Bitcoin News Today: Investors Flee as Trump's Tariffs Spark $19B Crypto Liquidation Wave

Bitcoin and altcoins faced a significant price decline following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, triggering a global sell-off in crypto markets. By midday on October 10, 2025, over $19 billion in leveraged long positions were liquidated, with Bitcoin (BTC) dropping below $110,000 for the first time in weeks. The total crypto market cap fell to $3.87 trillion, erasing nearly $200 billion in value within hours Crypto Price Drop Continues: $16B in Longs Liquidated as BTC^[1]. Ether (ETH) and other major altcoins, including Solana (SOL) and XRP, also experienced sharp declines, with some tokens losing over 30% of their value $6 billion wiped out in 1 hour! Trump to impose 130% tariff on China triggers crypto market sell-off^[4].

The sell-off intensified after Trump's Truth Social post, which canceled a planned meeting with Chinese President Xi Jinping and escalated trade tensions. Within hours, Bitcoin's price fell to $107,000 from a peak of $126,272 earlier in the week, marking a 13.15% drop. Altcoins fared worse, with Ethereum and XRP losing 15–30% as leveraged positions were liquidated en masse . Over $7.4 billion in crypto positions were wiped out in the 24 hours following Trump's announcement, including $6.7 billion in long positions and $695 million in short positions .

Market analysts attributed the crash to renewed fears of a U.S.-China trade war, which disrupted global supply chains and increased uncertainty in technology and blockchain sectors. Ethena's stablecoin USDe temporarily dipped below $1, highlighting liquidity strains in derivatives markets Crypto Price Drop Continues: $16B in Longs Liquidated as BTC^[1]. The U.S. government shutdown further exacerbated volatility by delaying key economic data releases, leaving traders without critical indicators during the turmoil Crypto Price Drop Continues: $16B in Longs Liquidated as BTC^[1].

The impact extended beyond crypto, with traditional markets also reacting. The S&P 500 and Nasdaq fell 1.6% and 1.3%, respectively, while gold surged over 1% as investors flocked to safe-haven assets . Crypto-related stocks, including Coinbase (COIN) and Robinhood (HOOD), declined 5–6%, reflecting broader risk-off sentiment .

Despite the immediate downturn, some analysts suggested the sell-off could mark a cyclical correction rather than a sustained bear market. However, Bitcoin's dominance rate fell below 59%, signaling a shift in capital toward altcoins . While the broader market remains volatile, the outcome of U.S.-China negotiations before November 1 will be critical in determining the next phase of crypto price action $6 billion wiped out in 1 hour! Trump to impose 130% tariff on China triggers crypto market sell-off^[4].