The crypto market reeled on October 10, 2025, as U.S. President Donald
announced a 100% tariff on Chinese imports, sending (BTC) and major altcoins into a freefall. Bitcoin plummeted below $110,000, a 12% drop in 24 hours, while (ETH) and (SOL) fell 16% and 20%, respectively . The move triggered over $19.31 billion in liquidations, with $16.81 billion in long positions wiped out, according to data from CoinGlass .
The selloff mirrored the 2020 market crash amid the pandemic, with traders labeling it a "flash crash of biblical proportions." Prominent trader Bob Loukas called it "Covid level nukes," while analysts noted the collapse was exacerbated by overbought conditions and leveraged positions . The U.S.-China trade tensions, sparked by China's rare earth export controls, intensified fears of a prolonged conflict, with Trump vowing to impose export restrictions on critical software .
Forbes analysts highlighted the unprecedented scale of the liquidations, noting that altcoins like
, , and LINK fell 20%-40%, far outpacing Bitcoin's decline . The total crypto market cap shed $200 billion, erasing gains from months of bullish momentum. "This is the largest single-day wipeout in crypto history," 10x Research analysts said, adding that the market's volatility now rivals traditional equities during geopolitical crises .Beyond tariffs, macroeconomic pressures compounded the downturn. A stronger U.S. dollar, delayed Solana and XRP ETF approvals, and the U.S. government shutdown created a "perfect storm" for crypto, per Coinpedia. The 10-year Treasury yield stabilized near 4.65%, signaling tight liquidity and reduced appetite for high-risk assets . Meanwhile, institutional investors rotated into safer havens, with gold surging past $4,000 per ounce as capital fled risk assets .
The crash also reignited debates over exchange conduct. Data from DeFiTracer showed Binance and others rapidly moving 4,000
($17 million) to platforms like OKX and Kraken within 10 minutes, fueling accusations of coordinated dumping . Critics alleged the moves were manipulative, though no regulatory evidence has emerged. "This looks like pure manipulation to liquidate longs," one analyst tweeted, citing the speed and scale of the outflows .Looking ahead, the market faces a critical juncture. If Bitcoin stabilizes above $109,000, a relief rally to $120,000 could follow, per Coinpedia. However, prolonged U.S.-China tensions or regulatory setbacks could prolong the downturn. The recent court ruling challenging Trump's tariff authority adds uncertainty, with the Supreme Court set to decide its legality by October 14 . For now, traders brace for volatility as the sector navigates its most severe shakeout since 2020.
Source: [1] Crypto Crash: Bitcoin (BTC) Down 10%, ETH, XRP,
in Freefall ... (https://www.coindesk.com/markets/2025/10/10/bitcoin-crashes-below-usd110k-cryptos-in-freefall-on-further-trump-tariff-on-china)[2] Why Bitcoin Price, Ethereum, XRP, Solana, Other Altcoins Are ... (https://www.thecoinrepublic.com/2025/10/10/why-bitcoin-price-ethereum-xrp-solana-other-altcoins-are-suddenly-falling/)
[3] 'Trump Surprise' Triggers Huge Crypto 'Flash Crash' As ... - 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/)
[4] Crypto Market Crash: Bitcoin and Ethereum Plunge as US (https://coinpedia.org/price-analysis/crypto-market-crash-bitcoin-and-ethereum-plunge-as-us-china-tensions-and-5b-liquidations-shake-investors/)
[10] Crypto Market Loses $200B After Trump's Tariffs: Phemex Guide (https://phemex.com/blogs/2025-crypto-crash-what-happened-how-to-navigate-next)
[11] Breaking: Bitcoin Crash Fueled by Exchanges Dumping Millions in ... (https://cryptoticker.io/en/breaking-bitcoin-crash-exchanges-dumping-crypto/)
[12] How the 2025 Court Ruling on Trump's Tariffs Could Impact Crypto (https://bitcoinchaser.com/2025-court-ruling-trumps-tariffs-crypto/)
[13] Crypto Markets Crash Due To Trump's Proposed Tariff On China (https://www.btcc.com/en-CA/academy/research-analysis/crypto-markets-crash-due-to-trumps-proposed-tariff-on-china-everything-you-need-to-know)
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