Bitcoin News Today: Bitcoin's Safe-Haven Status in Question as Tariffs Drive Flight to Gold
Aime SummaryBitcoin's price plunged below $119,000 on October 10, 2025, as renewed U.S.-China trade tensions sparked a sharp sell-off in cryptocurrencies and equities. The decline followed U.S. President Donald Trump's announcement of plans for "massive" tariffs on Chinese goods in response to export controls on rare earth metals. BitcoinBTC-- dropped nearly 3% in 24 hours, erasing gains from October and trading at $118,800, while EthereumETH-- (ETH) and SolanaSOL-- (SOL) fell 5%-6%. Related stocks, including CircleCRCL-- (CRCL), RobinhoodHOOD-- (HOOD), and CoinbaseCOIN-- (COIN), also declined by 5%-6% as investors rotated into safer assets like gold, which rose over 1% to $4,000 per ounce [1].
The sell-off extended to traditional markets, with the S&P 500 and Nasdaq declining 1.6% and 1.3%, respectively. WTI crude oil dropped nearly 4% below $60, reflecting broader risk-off sentiment. Over $824 million in leveraged crypto positions were liquidated in 24 hours, with Bitcoin accounting for the largest share. Analysts attributed the decline to fears of inflationary pressures from tariffs and tighter liquidity, which disproportionately impacted risk assets [1].
The market reaction mirrored past tariff-driven volatility. In April 2025, Trump's "Liberation Day" tariffs on 185 countries triggered a 1.1% drop in Bitcoin and a $2 trillion loss in S&P 500 market cap within 15 minutes. This time, the selloff was exacerbated by the ongoing U.S. government shutdown, which delayed key inflation data and regulatory decisions on crypto ETFs [5].
Despite the short-term turmoil, some analysts noted Bitcoin's resilience. David Siemer of Wave Digital Assets highlighted that ETF inflows and Federal Reserve rate cuts had boosted institutional demand for Bitcoin, while others warned of leveraged trading driving the rally. The $116,000–$118,000 range was identified as critical support, with a potential rebound contingent on softer tariff rhetoric or Fed easing [3].
The broader crypto market lost $125 billion in value within hours of Trump's announcement, with Ethereum sliding 4.7% to $4,104 and altcoins like Solana and XRPXRP-- falling over 2%. The total market cap dipped to $4.1 trillion from $4.27 trillion, reflecting a 3.4% decline. Liquidation data showed $709 million in long-position losses, with Bitcoin OG profiting $35 million from shorting BTC [8].
Long-term optimism persists among some investors. Arthur Hayes of BitMEX noted that Bitcoin's decentralized nature insulates it from trade policies, while Michael Saylor of MicroStrategy emphasized its role as a hedge against fiat devaluation. However, the recent correlation between Bitcoin and gold-both rising amid inflation fears-has raised questions about its status as a unique safe-haven asset .
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