Ethereum News Today: Market Panic or Manipulation? Crypto Loses $250B Amid Trade War Fears

Bitcoin's price plummeted 10% on October 10, 2025, dropping from $122,000 to $107,000 amid escalating U.S.-China trade tensions and accusations of coordinated dumping by major crypto exchanges. The total crypto market capitalization fell by approximately $250 billion, reaching $4 trillion, with hourly liquidations across exchanges surging to around $250 million Breaking: Bitcoin Crash Fueled by Exchanges Dumping Millions in Crypto^[1]. On-chain data revealed rapid Ethereum outflows, including Binance's transfer of 4,000 ETH ($17 million) to OKX and Kraken within 10 minutes, sparking speculation of deliberate price suppression Breaking: Bitcoin Crash Fueled by Exchanges Dumping Millions in Crypto^[1].

The U.S. and China's trade disputes intensified following President Donald Trump's announcement of 100% tariffs on Chinese imports, creating a "risk-off" environment. Exchanges such as Binance and Coinbase reportedly moved significant volumes of digital assets to mitigate losses or capitalize on panic selling. Historical patterns during geopolitical shocks were cited, but the lack of transparency fueled debates over whether the actions were market-driven or manipulative Breaking: Bitcoin Crash Fueled by Exchanges Dumping Millions in Crypto^[1].

Ethereum experienced a steeper decline, losing 15% of its value to $3,860 on Binance. Arkham data indicated liquidity adjustments during the volatility, yet traders remained skeptical of alleged manipulation. @DeFiTracer labeled the dumping "pure manipulation," accusing exchanges of liquidating long positions for profit, though no regulatory evidence has been confirmed Breaking: Bitcoin Crash Fueled by Exchanges Dumping Millions in Crypto^[1].

The U.S.-China tariff escalation directly influenced the sell-off. Trump's threats to impose export controls on Chinese goods triggered immediate market turmoil, wiping out $200 billion in crypto value within hours. Bitcoin's decline tested key psychological levels, while altcoins underperformed amid heavy selling. Analysts warned of prolonged bearish trends if trade tensions escalate further Breaking: Bitcoin Crash Fueled by Exchanges Dumping Millions in Crypto^[1].

Future implications highlight the need for regulatory scrutiny and transparency. The episode underscores exchanges' pivotal role in shaping crypto markets, with calls for greater oversight intensifying. Investors are monitoring regulatory responses to the alleged manipulation and potential further exchange actions Breaking: Bitcoin Crash Fueled by Exchanges Dumping Millions in Crypto^[1].