Bitcoin News Today: Retaliatory Tariffs Ignite Crypto Black Swan: $125B Vanishes in Hours

The global cryptocurrency market experienced a sharp selloff on October 10, 2025, following U.S. President Donald Trump's announcement of a 100% additional tariff on Chinese imports, effective November 1. The move, framed as retaliation against Beijing's export controls on rare earth metals, triggered immediate volatility across digital assets. Bitcoin (BTC) plummeted below $110,000, a 12% drop over 24 hours, while Ethereum (ETH) and other major altcoins such as XRP, Solana (SOL), and Dogecoin (DOGE) fell 16%–30%. Total crypto market capitalization dropped from $4.27 trillion to $4.10 trillion within hours, erasing $125 billion in value Coindesk^[1].

The sell-off was exacerbated by leveraged trading positions. Over $7.44 billion in liquidations occurred within an hour, with Bitcoin and XRP accounting for the largest losses. Binance and Coinbase, the world's two largest exchanges by trading volume, reported severe system strain and latency during the crisis. Binance reassured users of fund safety and restored operations by 8:06 PM, while Coinbase resolved performance issues by 7:06 PM TheStreet^[3].

The market turmoil mirrored broader financial market declines. The S&P 500 erased $1.2 trillion in value within 40 minutes of Trump's initial tariff announcement, with equities and commodities following suit. Analysts attributed the crypto crash to heightened geopolitical risks and elevated leverage in perpetual futures markets. "This was a black swan event," said David Jeong, CEO of Tread.fi, noting that institutional over-leverage amplified the downturn CoinPedia^[4].

Bitcoin's price action drew comparisons to the March 2020 market crash driven by the pandemic. Traders cited "Covid-level nukes" as a reference to the severity of the sell-off, with some calling it a "mother of shakeouts" for leveraged positions. Key support levels for Bitcoin were identified at $100,000, with analysts warning that a break below this threshold could signal the end of a three-year bull cycle CoinPedia^[4].

The U.S.-China trade tensions, now at their highest level since 2019, introduced uncertainty over global supply chains and technology sectors. Analysts warned that prolonged trade disputes could deepen the downturn, particularly if China retaliates with further export restrictions. "The altcoin complex got absolutely eviscerated," remarked Zaheer Ebtikar of Split Capital, noting that altcoins had not seen such levels in over a year Coindesk^[1].

Short-term market stability remains contingent on whether Trump formalizes the tariffs or if China escalates the dispute. A formal executive order could extend the downturn by one to two weeks, intensifying leveraged unwinding and stablecoin rotations. However, if no new measures are announced, the market may stabilize by early next week as risk appetite returns BeInCrypto^[2].