Bitcoin News Today: Bitcoin Hovers at $110K as Crypto's $20B Cleanse Begins

Bitcoin hovered near $110,000 on October 11, 2025, following a historic $20 billion liquidation event that failed to signal a market bottom, according to traders and data from crypto analytics platforms. The price action reflected broader uncertainty as U.S.-China trade tensions escalated, with Bitcoin's relative strength index (RSI) reaching oversold levels unseen since the onset of the trade war in February 2025 Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1].

The liquidation cascade, primarily driven by leveraged long positions, underscored the fragility of market sentiment. Data from CoinGlass estimated 24-hour liquidations at nearly $20 billion, though the firm noted the actual figure was likely higher due to reporting limitations on platforms like Binance Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1]. Exchange order books revealed a stark imbalance, with resistance clustered around $120,000 and minimal support near the $100,000 psychological level. This imbalance heightened fears of further downside, with traders warning that Bitcoin's "cleanse" of bull-market euphoria was only beginning Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1].

Key figures in the crypto community emphasized the prolonged bearish outlook. Trader Skew highlighted "passive buying" via Coinbase and the lingering impact of wide spreads as market makers assessed damage from the volatility. Fellow trader Roman, meanwhile, dismissed the recent lows as a false bottom, pointing to the dominance of speculative altcoins and Bitcoin's 700% surge from its macro bottom as evidence of an ongoing correction Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1]. CoinGlass's liquidation heatmap reinforced this view, showing concentrated short positions around $110,000 and long positions near $120,000, suggesting a potential "ping pong" price action between these levels Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1].

The U.S.-China trade war, reignited by President Donald Trump's 100% tariff announcement on Chinese imports, exacerbated market jitters. The S&P 500 closed down 2.7% on October 10, while Bitcoin plummeted below $119,000 amid renewed fears of a full-scale trade confrontation. Gold, however, emerged as a rare safe-haven asset, rising above $4,000 per ounce as investors sought refuge from equities and cryptocurrencies Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1].

Analysts at CoinDesk noted that the trade war's impact extended beyond Bitcoin, with altcoins and smaller tokens experiencing disproportionate declines. Ether (ETH) fell over 17%, while XRP and Dogecoin dropped more than 30% in a single day. The total crypto market capitalization shrank from $4.25 trillion to $4.05 trillion within hours of Trump's announcement, erasing $200 billion in value .

Despite the short-term pain, some market participants viewed the turmoil as a catalyst for long-term structural shifts. The "crypto cleanse" narrative, which framed the liquidation as a necessary correction to eliminate speculative projects, gained traction. Roman pointed to the 30 million altcoins deemed "scam projects" as a key factor in the ongoing market reset Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1]. Meanwhile, CoinGlass highlighted the role of liquidation heatmaps in identifying overleveraged positions, urging traders to adjust strategies to avoid being caught in cascading short squeezes Bitcoin (BTC) Liquidation Historical Data - gate.com^[2].

The path forward remains uncertain, with Bitcoin's next major support level at $100,000 in focus. Analysts at Cointelegraph suggested the price could revisit this threshold as part of a broader consolidation phase, while others emphasized the need for liquidity to stabilize order books. For now, the market remains in a "risk-off" mode, with geopolitical tensions and regulatory uncertainty likely to prolong volatility Bitcoin wobbles at $110K as trader says $20B liquidation rout not bottom^[1].