Bitcoin News Today: Bitcoin's Death Cross: Geopolitical Storms Signal Crypto's Prolonged Downturn
Aime SummaryBitcoin fell below $110,000 on October 10, 2025, marking a 12% drop in 24 hours amid escalating U.S.-China trade tensions. The decline followed U.S. President Donald Trump's announcement of a 100% additional tariff on Chinese goods, citing retaliatory measures against China's rare earth export controls [1]. The move triggered a crypto market sell-off, with EthereumETH-- (ETH) tumbling 16% below $3,700, SolanaSOL-- (SOL) and XRPXRP-- declining 20%-30%, and smaller altcoins like CardanoADA-- (ADA) and AaveAAVE-- (AAVE) falling as much as 40% [1].
Total liquidations across crypto derivatives markets reached $6.5 billion, with long-position traders accounting for $670 million of the losses [1]. Bitcoin's sharp drop erased $150 billion from the global crypto market cap within an hour, while the S&P 500 lost $1.2 trillion in value in 40 minutes as traditional markets mirrored the risk-off sentiment [2]. Analysts attributed the volatility to heightened macroeconomic uncertainty, including the U.S. government shutdown and unresolved trade negotiations .
Trump's tariff threat revived fears of a renewed trade war, exacerbating existing pressure on crypto markets. The president also hinted at imposing export controls on critical software, further intensifying investor anxiety [1]. CoinGecko data showed the total crypto market cap fell from $4.27 trillion to $4.10 trillion within hours, reflecting a broader "risk-off" shift as institutional traders avoided exposure to volatile assets [2].
The sell-off underscored crypto's growing sensitivity to geopolitical events. Bitcoin's price action formed a "death cross" technical pattern, where the 50-day moving average crossed below the 200-day average-a bearish signal historically associated with prolonged downturns [4]. Meanwhile, gold and the Japanese yen outperformed BitcoinBTC-- as traditional safe-havens, challenging the cryptocurrency's role as a macro hedge [4].
Market participants remain cautious. If no new tariff measures are formally announced, stabilization could occur by early next week as risk appetite returns. However, analysts warned that a formal executive order or Chinese retaliation could extend the downturn by one to two weeks, intensifying leveraged unwinding and stablecoin inflows [2].
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