Bitcoin News Today: Leverage Fuelled $19B Crypto Crash, Altcoins Undergo Structural Reset

The global cryptocurrency market experienced its largest single-day liquidation event on October 10–11, 2025, as former U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports triggered a synchronized collapse across risk assets. Over $19.1 billion in leveraged positions were liquidated within 24 hours, with $16.7 billion from long positions and an estimated 1.6 million traders affected Crypto Market Hit by $19B Liquidation, $400B Wipeout^[1]. The total crypto market capitalization plummeted by $400 billion, shrinking from $4.15 trillion to $3.74 trillion, while Bitcoin (BTC) and Ethereum (ETH) dropped to $101,500 and $3,373.67, respectively Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2].

Altcoins bore the brunt of the sell-off. XRP, for instance, fell to $1.25, a 44% decline from its prior week's price, while Dogecoin (DOGE) and Solana (SOL) hit intraday lows of $0.095 and $144.82, respectively Crypto’s $19 Billion Liquidation Explained: Here’s What Happened^[3]. Smaller altcoins, including SUI, ATOM, and AAVE, saw price drops exceeding 99% in some cases. The collapse was exacerbated by overleveraged positions in derivatives markets, with Hyperliquid processing $10.28 billion in liquidations and Binance's futures insurance fund draining $188 million to stabilize losses Crypto Market Hit by $19B Liquidation, $400B Wipeout^[1].

The catalyst for the crisis was Trump's Truth Social post outlining tariffs on Chinese goods, which reignited U.S.-China trade war fears and triggered a broader risk-off sentiment. Global equities, including the Nasdaq, fell 3.6%, while Treasury yields spiked. Analysts attributed the crash to a combination of macroeconomic uncertainty and excessive leverage, with Vincent Liu of Kronos Research noting, "Leverage was the gasoline," and David Jeong of Tread.fi calling it a "black swan event" Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2]. Arthur Hayes of BitMEX suggested the event marked a "structural reset" for altcoins rather than a terminal decline Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2].

The liquidation event surpassed previous crises in scale. The March 2020 (COVID-19) and November 2022 (FTX collapse) crashes saw $1.2 billion and $1.6 billion in liquidations, respectively, making the October 2025 event over 10 times larger Crypto’s $19 Billion Liquidation Explained: Here’s What Happened^[3]. Institutional investors observed that the sell-off exposed vulnerabilities in leveraged markets, with one whale reportedly profiting $190 million by shorting BTC and ETH before the crash Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2].

Recovery signs emerged late Saturday as exchanges stabilized and market makers absorbed inventory. Zaheer Ebtikar of Split Capital predicted a drawn-out bottoming process, emphasizing that macroeconomic uncertainty-particularly inflation trends and the Federal Reserve's policy trajectory-would dominate market sentiment Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2]. Analysts also highlighted the role of the crypto Fear & Greed Index, which shifted to "Fear" as confidence in the "rate-cut equals rally" narrative eroded Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2].

The crash underscored the sector's sensitivity to geopolitical and macroeconomic shocks. While Bitcoin and Ethereum stabilized near key support levels, the event marked a pivotal moment for leverage management in crypto. Institutions and regulators are now scrutinizing the structural risks of leveraged trading, with some analysts suggesting the crash could lead to a healthier market cycle by purging excessive leverage Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2].