Bitcoin News Today: Crypto Market Rebounds on Trump's Trade U-Turn, But Structural Risks Remain

Bitcoin, Ethereum, XRP, and Dogecoin experienced a sharp rebound in early October 2025 following U.S. President Donald Trump's remarks suggesting de-escalation of trade tensions with China, reversing a prior flash crash triggered by his announcement of 100% tariffs on Chinese imports. The initial sell-off saw $19 billion in leveraged positions liquidated across major exchanges, with Bitcoin plunging from over $125,000 to below $102,000 within hours, erasing $500 billion in market value. Ethereum, XRP, and Solana fell by more than 15%, while altcoins like Dogecoin and Cardano dropped over 25% .

The market stabilized after Trump posted on Truth Social, stating, "The U.S.A. wants to help China, not hurt it," which alleviated immediate fears of a trade war. By October 12, Bitcoin had surged 4.9% to $115,716, Ethereum gained 11.7%, and XRP climbed 8.8%, with the broader crypto market recovering to $3.9 trillion . Analysts attributed the rebound to renewed speculative activity, with open interest in Bitcoin and Ethereum derivatives rising by 8.1% and 13.1%, respectively .

The crash was exacerbated by structural vulnerabilities in the crypto market, including high leverage and thin liquidity. CoinGlass data revealed $9.6 billion in forced liquidations within 24 hours, the largest single-day event in crypto history . Exchanges like Binance, Bybit, and OKX faced outages and delayed orders during the turmoil, though operations normalized by October 12 .

Technical indicators suggest the market may have found a short-term floor. Bitcoin tested a bullish golden cross pattern, historically preceding major rallies, while Ethereum stabilized above $4,100, showing resilience compared to other altcoins . Analyst Michaël van de Poppe described the crash as a "massive outlier," noting Bitcoin's need to hold above $110,000 to confirm continued bull market strength. However, he cautioned against premature optimism, emphasizing the market's dependence on Trump's next moves and China's response .

The U.S. dollar also reacted to the geopolitical uncertainty, with gold surging to $4,000 per ounce as investors shifted to safe-haven assets . Meanwhile, traditional markets mirrored crypto's volatility, with the S&P 500 and Nasdaq Composite declining 2.7% and 2.4%, respectively, on October 10 .

Despite the rebound, risks remain. Trump's tariffs could reignite volatility if China retaliates, and the market's overleveraged state-evidenced by $630 million in liquidations in the 24 hours post-rebound-suggests fragility . Institutional demand, however, remains strong, with spot Bitcoin ETFs seeing $3.5 billion in net inflows year-to-date .

[1] Forbes (https://www.forbes.com/sites/digital-assets/2025/10/11/trump-surprise-triggers-huge-crypto-flash-crash-as-traders-brace-for-bitcoin-ethereum-xrp-bnb-and-solana-price-wipeout/)

[2] Benzinga (https://www.benzinga.com/crypto/cryptocurrency/25/10/48168425/bitcoin-ethereum-xrp-dogecoin-rebound-after-trump-says-us-wants-to-help-china-analyst-sees-no-bear-market-signal-yet)

[3] TheStreet (https://www.thestreet.com/crypto/markets/trump-says-dont-worry-about-china)

[4] FX Leaders (https://www.fxleaders.com/news/2025/10/13/daily-crypto-signals-bitcoin-and-ethereum-rally-as-us-china-trade-tensions-ease-market-recovers-from-flash-crash/)

[10] Benzinga (https://www.benzinga.com/crypto/cryptocurrency/25/10/48091812/bitcoin-ethereum-xrp-dogecoin-snap-winning-run-analyst-sees-new-eth-highs-once-golds-insanely-parabolic-trajectory-ends)

[13] Coindesk (https://www.coindesk.com/markets/2025/10/10/trump-tariff-threat-on-china-sends-bitcoin-tumbling-below-usd119k)