Bitcoin News Today: Bitcoin's $200B Crash: How Trump's Tariffs Exposed Crypto's Macro Vulnerability

Bitcoin prices plummeted below $110,000 in late October 2025 following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, triggering a sharp selloff across cryptocurrency markets. The move, coupled with export controls on critical software, intensified U.S.-China trade tensions and sent Bitcoin down 12% in 24 hours to $107,000, while Ethereum fell over 16% to $3,700. The total crypto market capitalization dropped by $200 billion in a single day, with liquidations exceeding $19 billion, including a $203 million Ethereum trade wiped out on Hyperliquid Coindesk^[1]. Analysts attributed the crash to leveraged positions unwinding and a shift in macroeconomic sentiment, with Bitcoin's decline testing key psychological support levels Decrypt^[2].

Three potential scenarios emerged for Bitcoin's near-term trajectory, as outlined by Bitunix Research. suggests Bitcoin could stabilize above $108,000 and rebound toward $113,000–$116,000 if short-term volatility subsides and funding rates normalize. warns of a breakdown below $106,000, potentially extending losses to $104,000 or the $90,000s, mirroring past stress points. anticipates consolidation between $109,000 and $116,000 if geopolitical tensions ease and the tariff remains a future risk rather than an immediate shock Bitunix Blog^[5].

Market analysts highlighted the interplay between trade policy and crypto dynamics. "Bitcoin's recent fall underscores its integration into the global risk landscape," said Bitunix Research. "When macro policy shifts affect sentiment, digital assets react in tandem with equities and commodities." The selloff also amplified correlations with traditional assets, as the U.S. dollar strengthened and gold rallied to $2,400 per ounce amid risk-off sentiment Influencer Magazine^[3].

Despite the downturn, some traders remained bullish. Myriad Markets reported that 45% of predictors expect Bitcoin to reach $140,000 before retreating to $110,000, though the platform is developed by Decrypt's parent company Decrypt^[2]. Meanwhile, CoinDesk analysts noted that Bitcoin's hourly chart still holds an ascending trendline, with a breakout above $116,000 potentially signaling renewed momentum. Conversely, a failure to defend $120,000 could see further declines to $116,000 or lower .

The U.S. government shutdown and delayed inflation data added uncertainty, with the Bureau of Labor Statistics set to release the September 2025 Consumer Price Index on October 24. This data could influence the Federal Reserve's policy decisions, as the 100% tariff may elevate import prices and complicate inflation targets. Economists estimate the measure could increase the CPI by 0.6–0.8 percentage points in the next quarter Bitunix Blog^[5].

In the broader context, the crash demonstrated crypto's sensitivity to global liquidity and policy shifts. "This was a black swan event," said David Jeong of Tread.fi, emphasizing how leverage in perpetual futures amplified the downturn Coinpedia^[6]. Institutional over-leverage and forced liquidations exacerbated the sell-off, with Coinglass reporting $19.13 billion in liquidations. However, exchanges like Binance confirmed that systems handled the volatility without systemic failure, and liquidity rebounded quickly once forced selling abated Bitunix Blog^[5].

As markets brace for the weekend, the path forward hinges on China's response to the tariffs and whether the U.S. and China can avoid further escalations. "Every decision made at the top has a ripple effect," said an analyst. "And today's Bitcoin crash is just one of those ripples." Influencer Magazine^[3]