Bitcoin News Today: Trade War Fears Spark Crypto Selloff, Gold Gains as Safe Haven

Bitcoin and major cryptocurrencies experienced sharp declines on October 10, 2025, as U.S. President Donald Trump's threats to impose "massive" tariffs on Chinese imports reignited fears of a trade war. Bitcoin (BTC) dropped below $119,000, a 2.5% decline from its recent peak above $126,000, while Ethereum (ETH) fell nearly 5% to $4,107 and Solana (SOL) and XRP lost 3.5% and 2.7%, respectively Benzinga^[1]. The global crypto market cap fell by $125 billion within hours, with over $824 million in leveraged positions liquidated across exchanges BeInCrypto^[2].

The selloff mirrored traditional markets, where the S&P 500 erased $1.2 trillion in value within 40 minutes of Trump's announcement. The move underscored crypto's growing sensitivity to macroeconomic events and geopolitical tensions Coindesk^[3]. Coinglass data showed 204,514 traders liquidated positions in the past 24 hours, with long positions accounting for 77% of losses Coinpedia^[4]. Altcoins faced disproportionate pressure, with Dogecoin (DOGE) and Shiba Inu (SHIB) plummeting over 5% as investors rotated into stablecoins and gold CNBC^[5].

Analysts attributed the volatility to renewed U.S.-China trade war anxieties, compounded by uncertainty around the U.S. government shutdown and delayed regulatory approvals for crypto ETFs. Bitcoin's short-term support at $112,000 was highlighted as critical, with analysts noting that a break below this level could trigger further declines toward $108,000 The Coin Republic^[6]. Conversely, consolidation above $119,500 could set up a "deviation long opportunity," according to trader notes from CrediBULL Crypto Benzinga^[1].

Gold surged 1% to $4,000 per ounce as investors sought safe havens, outperforming Bitcoin in the "debasement trade" narrative. This trend reflected broader concerns over U.S. debt, inflation, and currency stability, with crypto and gold both viewed as hedges against policy risks Clometrix^[7]. Morgan Stanley's recent decision to open crypto access to all clients contrasted with the current risk-off sentiment, highlighting diverging views on crypto's role in institutional portfolios CNBC^[5].

The sell-off was exacerbated by technical factors, including crypto options expiry and profit-taking after recent record highs. Bitcoin ETF inflows slowed, while on-chain data showed whales booking profits to avoid liquidations. Lookonchain noted that long-term holders had reduced exposure as prices approached key resistance levels .

Market participants remain divided on the outlook. Some analysts, like CryptoUB, emphasized that tariff-driven dips into the $108,000–$118,000 range could present buying opportunities. Others, including Clometrix, warned of prolonged volatility if trade tensions escalate, projecting annual altcoin volatility of 40-50% under current conditions . The coming weeks will test whether institutional buyers can stabilize markets or if renewed protectionism will deepen the correction.