Bitcoin News Today: A $420M Whale Bet Accelerates Bitcoin's 17% Drop Amid Tariff Fears

Bitcoin's price plummeted by 17% in late October 2025 amid escalating U.S.-China trade tensions and a significant short position by a major whale, triggering widespread liquidations and market volatility. The cryptocurrency fell below $110,000, with Ethereum (ETH) and Solana (SOL) also tumbling over 15% as U.S. President Donald Trump announced plans for "massive" tariffs on Chinese goods. The move reignited fears of a trade war, sending shockwaves through global markets and accelerating Bitcoin's decline from a record high above $126,000 to sub-$110,000 within days Bitcoin (BTC) Price News: Bulls Stifled Again - CoinDesk^[1].

A key factor in the selloff was the activity of a prominent Bitcoin whale, who opened a $420 million short position on Hyperliquid using 6X leverage. This move, combined with the transfer of $50 million to Binance, signaled a bearish bet on the asset. The whale's actions, revealed by blockchain analytics platforms Arkham and Lookonchain, were followed by a sharp drop in Bitcoin's price below $120,000, with the liquidation price for the position set at $140,660 . Meanwhile, short-term holder (STH) whales holding over 1,000 BTC each accumulated $10.1 billion in unrealized profits, according to CryptoQuant. However, exchange inflows of $5.7 billion from STH wallets highlighted active profit-taking, raising concerns about further downward pressure .

The tariff threat exacerbated risk-off sentiment, with global financial markets reacting swiftly. U.S. stocks, including the S&P 500 and Nasdaq, fell by 1.6% and 1.3%, respectively, while crude oil prices dropped nearly 4% Bitcoin (BTC) Price News: Bulls Stifled Again - CoinDesk^[1]. Crypto-related equities also suffered, with Circle (CRCL), Robinhood (HOOD), and Coinbase (COIN) declining 5%-6%. Gold, traditionally viewed as a safe haven, surged over 1% as investors shifted away from volatile digital assets Bitcoin (BTC) Price News: Bulls Stifled Again - CoinDesk^[1].

Market data revealed the severity of the crash: over $900 million in crypto liquidations occurred within 24 hours, with Bitcoin alone losing $250 million per hour at the peak of the selloff. Ethereum faced the largest liquidations, totaling $105 million as its price surged past $4,000, triggering a short squeeze. Eric Trump, son of the U.S. president, publicly mocked short sellers, stating, "Stop betting against BTC and ETH-you will be run over" .

Analysts noted historical parallels, citing Trump's April 2025 "Liberation Day" tariffs, which had previously caused a 1.1% drop in Bitcoin within an hour. The current selloff, however, was more severe, with 210,000 traders liquidated in a single day and a single Hyperliquid order wiping out $15.49 million Bitcoin Crashes Below $110K as Trump’s 100% China Tariff Threat …^[2]. Morgan Stanley's recent decision to open crypto access to all clients, including retirement accounts, underscored growing institutional interest, but the market's response to geopolitical shocks demonstrated crypto's increasing correlation with traditional assets Bitcoin Whale’s $420M Short Position Sparks Market Buzz^[4].

Despite the turmoil, 45% of predictors on Myriad Markets remain bullish, forecasting a rebound to $140,000 before a potential drop to $110,000. This optimism hinges on whether Trump's tariff threats materialize into policy or serve as negotiation tactics, as seen in past trade disputes Bitcoin Whale’s $420M Short Position Sparks Market Buzz^[4].