Bitcoin News Today: Trump Tariffs Trigger Crypto Panic: Fear Index Hits 6-Month Low Amid $19B Liquidations

The Bitcoin Fear & Greed Index plummeted to 27 on October 11, 2025, marking the lowest level in six months and signaling extreme market fear following U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports. The index, which measures investor sentiment on a scale of 0 to 100, dropped 37 points from its previous "Greed" reading of 64, reflecting a sharp reversal in market psychology. The move was triggered by a record $19.37 billion in liquidations across crypto markets within 24 hours, with Bitcoin briefly dipping to $102,000 on the Binance perpetual futures pair . Over 1.67 million traders were affected, and the global crypto market cap fell 9% to $3.8 trillion, erasing $1 trillion in value within three hours .

The liquidation event was concentrated on long positions, which accounted for $16.85 billion in losses compared to $2.51 billion from short positions. Bitcoin led the losses with $5.39 billion in liquidations, followed by Ethereum at $4.44 billion and Solana at $2.02 billion. Hyperliquid, a derivatives exchange, recorded the largest single liquidation: a $203.36 million ETH-USDT position . The volatility overwhelmed exchange infrastructure, with Binance and Coinbase experiencing technical outages during peak trading hours .

Analysts highlighted the index's plunge as a potential contrarian signal. Andre Dragosch, Head of Research at Bitwise Europe, noted that the firm's Intraday Sentiment Index reached -2.8 standard deviations-its lowest since the 2024 "Yen Carry Trade Unwind." Historical parallels were drawn to April 16, 2025, when the index hit a similar low before Bitcoin rebounded to new highs. However, this time, the trigger was Trump's tariff announcement, which escalated trade tensions and disrupted global markets .

Bitcoin's price reaction underscored the geopolitical sensitivity of crypto markets. The asset fell 7.65% to $112,245.74 in 24 hours, with its market capitalization dropping 7.68% to $2.23 trillion . Ethereum and other altcoins also suffered steep declines, though Ethereum later rebounded above $4,000 by Sunday. The Bitcoin Fear & Greed Index's extreme fear reading contrasted with its previous "Greed" status just days earlier, when Bitcoin reached $125,100 .

Technical analysis identified critical support and resistance levels for Bitcoin and Ethereum. BTC rebounded from a low of $102,000 and tested $113,500 as a key threshold for a potential relief rally. Resistance levels were identified at $117,933 and $124,475. For Ethereum, the $4,000 psychological level was seen as a pivotal marker for upward momentum . Analysts debated whether the crash marked a cycle bottom or merely a correction. Michael van de Poppe of MN Trading Capital compared the event to the 2020 COVID-19 crash, suggesting it could signal a turning point. Conversely, Vincent Liu of Kronos Research attributed the rout to institutional over-leverage and U.S.-China macroeconomic fears .

The market's resilience was evident in early recovery signs. By October 11, Bitcoin had climbed to $114,000, and Ethereum surpassed $4,000. Historical data showed that Bitcoin typically rebounded after October downturns, averaging 20.10% returns in the month since 2013. If the pattern repeated, a 21% rebound from the $102,000 low could push Bitcoin toward $124,000 within a week . However, ongoing policy uncertainty, including Trump's November 1 tariff deadline, could prolong volatility.

The crash also tested the crypto market's ability to handle extreme volatility. Brian Strugats of Multicoin Capital emphasized the need to monitor counterparty exposure, while Caroline Mauron of Orbit Markets identified $100,000 as a critical support level for Bitcoin. Deribit data showed the highest put options activity at $110,000, reflecting bearish positioning .

[1] Crypto Fear Index Hits 6-Month Low After Trump's Tariff Shock (https://www.analyticsinsight.net/cryptocurrency-analytics-insight/crypto-fear-index-hits-6-month-low-after-trumps-tariff-shock)

[2] Crypto Market Flips from 'Greed' to 'Fear' in 24 Hours (https://cryptonews.com/news/crypto-market-flips-from-greed-to-fear-in-24-hours-more-crash-coming/)

[3] Crypto Weekly Wrap: 10th October 2025 - iconomi.com (https://www.iconomi.com/blog/crypto-weekly-wrap-10th-october-2025)