Bitcoin News Today: Safe-Haven Bitcoin Dives 10% as Geopolitical Fears Trigger $280B Sell-Off

Bitcoin plunged over 10% following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, triggering a broader crypto market sell-off that erased nearly $280 billion in value within hours Coindesk^[1]. The price of Bitcoin fell below $110,000, marking the steepest one-day decline of 2025, while Ethereum (ETH) dropped 16% to below $3,700, and altcoins like Solana (SOL) and XRP fell 20%-30% FXStreet^[2]. The total cryptocurrency market capitalization plummeted from $4.25 trillion to $4.05 trillion, with leveraged traders liquidating $6.5 billion in positions, including $235 million in long ETH positions CryptoTicker^[3].

The tariff announcement, effective November 1, came amid escalating trade tensions between the U.S. and China, which Trump cited as a response to China's export controls on rare earth metals. In a Truth Social post, Trump described China as "hostile" and warned of additional countermeasures, including export controls on critical software TheStreet^[4]. The move triggered a global "risk-off" flight to safety, with the S&P 500 and Dow Jones indices also collapsing, and the U.S. Dollar Index (DXY) falling 0.63% BeInCrypto^[5].

Technical analysis highlighted Bitcoin's breakdown below key support levels, including the 50-day simple moving average (~$114,500) and critical psychological support near $110,000 CoinCentral^[6]. A daily candlestick chart showed a massive red engulfing bar, signaling intense selling pressure and panic liquidations. Analysts noted the decline mirrored previous macroeconomic downturns but emphasized its speed and scale as the worst single-day correction of 2025 Bitcoin Magazine^[7].

The market reaction was exacerbated by overlapping factors, including crypto options expiries and declining ETF inflows. On-chain data revealed that long-term holders and whales had begun booking profits to avoid liquidations, while institutions reduced exposure to risk assets Forbes^[8]. Despite short-term volatility, some analysts pointed to potential accumulation opportunities near $100,000, citing historical patterns and bullish technical divergences .

Trump's tariff policy reignited fears of a global trade war, threatening supply chains and economic stability-conditions historically detrimental to crypto markets. While Bitcoin is often seen as a hedge against geopolitical uncertainty, the immediate response indicated traders prioritizing liquidity and stability over risk assets .

The U.S. Treasury reported a 4.071% yield on 10-year bonds after rising above 4.15% earlier in the week, while the dollar's decline underscored broader macroeconomic concerns . Market participants now await clarity on whether China will retaliate or engage in negotiations before the November 1 implementation date.