Bitcoin News Today: Trade War Fears Spark $19B Crypto Crash as Bitcoin Plunges 17%

Bitcoin fell 17% amid a $19.1 billion liquidation wave in the crypto market on October 11, 2025, triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports. The sell-off, the largest single-day liquidation since April 2025, saw over 1.62 million traders lose positions, with $16.7 billion in losses attributed to long positions and $2.4 billion to shorts . Bitcoin's price plunged from an all-time high near $125,000 to $113,294, briefly dipping below $110,000 . Ethereum dropped to $3,844, while altcoins like Solana (SOL) and XRP fell 15%-30% .

The collapse was driven by renewed U.S.-China trade war fears, exacerbated by Trump's Truth Social post and Beijing's rare earth export controls. CoinGlass data revealed Bitcoin led liquidations at $5.34 billion, followed by Ethereum at $4.39 billion . The U.S. government shutdown, which delayed key economic data, further heightened uncertainty .

Market mechanics amplified the downturn. Derivative positions, particularly leveraged longs, faced cascading liquidations as funding rates turned negative. Ethena's stablecoin USDe temporarily dipped below $1, highlighting peg instability during volatile periods . Hyperliquid reported a $15.49 million liquidation for a BTC-USDT contract, the largest single trade .

Despite the turmoil, some traders profited. A whale on Hyperliquid closed short positions in Bitcoin and Ethereum, earning an estimated $190 million . Analysts noted oversold technical indicators like RSI and MACD, suggesting potential short-term rebounds .

Long-term projections remain bullish. Bitwise forecasts Bitcoin could reach $1.3 million by 2035, driven by institutional adoption and macroeconomic trends . However, regulatory shifts in China and global economic policies will shape future trajectories .

[1] $16B in Longs Liquidated as Wall Street Sell-Off Extends BTC, ETH ... (https://www.coindesk.com/markets/2025/10/10/usd16b-in-longs-liquidated-as-wall-street-sell-off-extends-btc-eth-broader-crypto-market-meltdown)

[2] Crypto market crash: Why are Bitcoin and altcoins going down today? (https://invezz.com/news/2025/10/08/crypto-market-crash-why-are-bitcoin-and-altcoins-going-down-today/)

[3] Why Bitcoin Price, Ethereum, XRP, Solana, Other Altcoins Are Suddenly Falling (https://www.thecoinrepublic.com/2025/10/10/why-bitcoin-price-ethereum-xrp-solana-other-altcoins-are-suddenly-falling/)

[4] Bitcoin Crashes Hard After Trump's 100% Tariff on China ... (https://cryptoticker.io/en/bitcoin-crash-trump-china-tariff-market-meltdown)

[5] Historic Crypto Market Crash Triggers Record $191 Billion in ... (https://yuantrends.com/crypto-market-crash-liquidation-record-2025)

[6] Crypto market suffers largest single-day liquidation in history (https://www.cryptopolitan.com/crypto-market-suffers-largest-liquidation)

[7] Crypto market endures record $9.55B single-day liquidation. (https://cryptorank.io/news/feed/fb74a-crypto-market-suffers-largest-liquidation)

[13] Bitcoin's Price Dynamics: Fibonacci Analysis and ... (https://cryptorobotics.ai/news/bitcoin-fibonacci-price-predictions-2025/)