Bitcoin News Today: Leverage-Driven Crypto Purge Triggers $108K Support Test as Markets Rebalance

Bitcoin plunged to $104,782 on October 10, 2025, following U.S. President Donald Trump's announcement of a 100% tariff on critical software imports from China, effective November 1. The move reignited trade tensions and triggered a sharp selloff in global financial markets, with the S&P 500 dropping 2.1% and Bitcoin falling 8.4% from its all-time high of $126,293 CoinDesk^[1]. Ether (ETH) and other major altcoins, including XRP, Dogecoin (DOGE), and Solana (SOL), also crashed, with some tokens declining 20%-40%. Over $16 billion in leveraged long positions were liquidated, affecting 1.6 million traders, according to CoinGlass and The Kobeissi Letter Forbes^[2].

The crash was exacerbated by leveraged trading practices, where highly speculative bets led to cascading forced liquidations. Samir Kerbage of Hashdex noted that "leverage amplifies short-term volatility in a 24/7 market," as margin calls and automated closures accelerated the downturn CNN^[3]. The event mirrored the March 2020 market crash, with some analysts labeling it a "crypto purge" that wiped out excess leverage rather than signaling a structural collapse Forbes^[2].

Technical analysis from FinanceFeeds highlighted a critical support zone at $108,000, which Bitcoin rebounded from after the selloff. The indicator suggested a potential rise to $120,000, though analysts cautioned that a drop below $100,000 could trigger further declines FinanceFeeds^[4]. Blockonomi's analysis projected a trading range of $108,000–$125,000 for September 2025, with $119,000 as the average target, citing ETF outflows and historical volatility patterns Blockonomi^[5].

The broader crypto market faced additional stressors. Binance reported technical glitches in stablecoins and platform modules due to sharp price swings, while speculation about insider trading in short positions remained unverified CNN^[3]. Despite the turmoil, institutional adoption and ETF inflows continued to drive long-term optimism. Binance Research noted that U.S. spot Bitcoin and Ethereum ETFs attracted $28 billion in net inflows in 2025, with BlackRock dominating the sector .

Regulatory developments also influenced the market. The U.S. passed the GENIUS Act, clarifying stablecoin regulations and boosting consumer confidence Grand View Research^[8]. Meanwhile, China's cryptocurrency market, projected to grow at a 13.6% CAGR to $1.34 billion by 2030, remained a focal point despite the country's ban on trading .

Analysts remain divided on short-term prospects. While some view the crash as a necessary correction, others warn of prolonged volatility due to geopolitical tensions and macroeconomic factors. Cointribune's technical analysis emphasized caution, noting that Bitcoin must hold above $119,345 to avoid a bearish acceleration toward $117,500 Gate^[7].

The event underscores crypto's growing integration with traditional markets. As DeFi lending surged 80% and tokenized equities expanded, the sector's resilience and utility beyond speculation became evident . However, challenges like regulatory uncertainty and environmental critiques persist, requiring balanced strategies for sustained growth.