Bitcoin News Today: "19B Crypto Purge: How Market Pain Could Fuel a Cleaner Bull Run"

The global cryptocurrency market experienced a historic liquidation event in late October 2025, wiping out over $19 billion in leveraged positions as U.S.-China trade tensions escalated following President Donald Trump's announcement of 100% tariffs on Chinese imports. Bitcoin plummeted nearly 10% in five days, Ethereum dropped 14%, and altcoins like Solana and XRP fell 20-22%, triggering widespread panic across exchanges and decentralized finance (DeFi) platforms Messari^[3]. Despite the turmoil, analysts argue the crash may signal the beginning of a more sustainable bull cycle, driven by macroeconomic easing, institutional adoption, and structural market shifts.

Market Dynamics and Catalysts

The crash, described as the largest liquidation in crypto history by CoinGlass, was catalyzed by Trump's tariff policy and broader macroeconomic uncertainty. However, many observers view the event as a necessary purge of excessive leverage and speculative positions, creating a cleaner foundation for future growth . Key factors expected to fuel the next bull run include:

1. : U.S. spot Bitcoin and Ethereum ETFs, backed by firms like BlackRock and JPMorgan, continue to attract inflows. Bernstein analysts project Bitcoin could reach $200,000 by early 2026 if institutional adoption accelerates The Block^[1].

2. : The Federal Reserve's anticipated rate cuts, coupled with Trump's dovish economic policies, are seen as tailwinds for risk assets. The Fed cut rates by 25 basis points in September 2025, with further reductions expected in 2026 .

3. : Recent executive orders allowing crypto inclusion in 401(k) plans and clearer regulatory frameworks are fostering institutional confidence.

4. : Bitcoin's ability to retest and hold key resistance levels, such as $104,500, is critical for a sustained rally. A breakout above $116,000–$120,000 is widely viewed as a prerequisite for the next phase The Block^[1].

Market Structure and Fundamentals

Ethereum's performance underscores broader market resilience. In Q2 2025, ETH surged 37% to $2,487, supported by $4 billion in net inflows to spot ETFs. Staking activity and Layer-2 scaling advancements, such as Proto-Danksharding, are strengthening Ethereum's utility and scalability The Block^[1]. Meanwhile, altcoins are poised to benefit from a potential rotation of capital once Bitcoin stabilizes, with projects focused on infrastructure, cross-chain solutions, and real-world asset (RWA) tokenization attracting attention .

Risks and Uncertainties

Despite bullish signals, risks remain. A stronger U.S. dollar, regulatory crackdowns, or geopolitical shocks could delay the bull run. The U.S. Dollar Index (DXY) is seen as a key macro risk, with its potential resurgence pressuring crypto liquidity. Additionally, false breakouts or overleveraged recoveries could lead to abrupt corrections The Block^[1].

Outlook and Key Indicators

Experts anticipate the bull run to gain momentum in October 2025, with momentum potentially carrying into early 2026. Sustained ETF inflows, falling real interest rates, and expanding altcoin breadth are critical indicators to monitor. If institutional flows persist and Bitcoin clears key resistance levels, the market could enter a "long and exhausting" bull phase, as described by Bernstein analysts The Block^[1].