The cryptocurrency market reeled on October 10, 2025, as U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports triggered a historic sell-off.
(BTC) plummeted over 8% to $104,782 within hours, while (ETH) and altcoins like (SOL) and suffered double-digit declines. Over $19 billion in leveraged positions were liquidated, marking the largest single-day crypto wipeout in history . Amid the turmoil, Michael Saylor, CEO of MicroStrategy, doubled down on his bullish stance, asserting that Bitcoin's decentralized nature shields it from the economic volatility caused by geopolitical tensions.
Trump's tariff threat, framed as retaliation for China's rare-earth export controls, sent shockwaves through global markets. The S&P 500 and Nasdaq plummeted, while crypto derivatives platforms reported cascading liquidations. CoinGlass data revealed that Bitcoin long positions alone lost $5.38 billion, with Ethereum longs shedding $4.43 billion . Analysts drew parallels to the 2020 pandemic crash, though the scale of this selloff was unprecedented. "This is the largest liquidation event in crypto history," CoinGlass noted, emphasizing the role of excessive leverage in amplifying losses .
Despite the market turmoil, Saylor remained steadfast in his belief that Bitcoin is uniquely positioned to thrive amid economic uncertainty. "There are no tariffs on Bitcoin," he tweeted, highlighting its immunity to traditional trade policies. Saylor's company, MicroStrategy, has accumulated 528,185
, valued at $43.3 billion, as part of its long-term strategy to hedge against macroeconomic risks . He argued that Bitcoin's scarcity and decentralization make it a superior store of value compared to fiat currencies, which are vulnerable to inflation and policy shifts.
While retail traders faced massive losses, institutional demand for Bitcoin showed resilience. U.S.-listed Bitcoin ETFs continued to attract inflows, with BlackRock's iShares Bitcoin Trust (IBIT) holding over 800,000 BTC and $97 billion in assets under management . Analysts like Tom Lee of Fundstrat viewed the pullback as a buying opportunity, noting that blockchain and AI innovations remain core drivers of the current bull cycle. "Unless there's a structural change, this is a temporary dip," Lee said, adding that ETF flows and institutional confidence could stabilize prices.
The tariff-driven crash underscored crypto's sensitivity to global policy shifts. However, some experts argued that Bitcoin's decoupling from traditional markets positions it as a hedge against inflation and currency debasement. A report by the Economic Times highlighted that Bitcoin's price rebounded to $111,500 by mid-October, suggesting that the bull market structure remains intact . Meanwhile, geopolitical tensions and potential Fed easing could further fuel demand for digital assets as investors seek alternatives to volatile fiat systems.
As markets digest the fallout, the focus shifts to whether the crash will catalyze a long-term correction or serve as a catalyst for renewed growth. Saylor's advocacy, combined with institutional adoption and macroeconomic tailwinds, points to a resilient Bitcoin ecosystem. However, prolonged trade wars or regulatory crackdowns could test the market's endurance. For now, the crypto community watches closely, balancing optimism with caution in an increasingly unpredictable landscape.
Source: [1] This is the Full Title of the First News Article (https://www.coindesk.com/markets/2025/10/10/bitcoin-crashes-below-usd110k-cryptos-in-freefall-on-further-trump-tariff-on-china)
[2] Cryptocurrency Market Update: October 2025 Rally Ends with ... (https://ts2.tech/en/cryptocurrency-market-update-october-2025-rally-ends-with-tariff-driven-selloff/)
[3] Trump's new 100% tariffs on China triggered a $19 billion ... - CNN (https://www.cnn.com/2025/10/11/business/trump-tariffs-crypto-selloff)
[4] Crypto's $19 Billion Liquidation Explained: Here's What Happened (https://www.ccn.com/education/crypto/cryptos-19-billion-liquidation-explained-trump-china-tariff-leverage-crash/)
[5] Saylor on Bitcoin: "No Tariffs on BTC" Amid Economic Shifts (https://www.ethnews.com/saylor-on-bitcoin-no-tariffs-on-btc-amid-economic-shifts/)
[6] Bitcoin Price Prediction: Trump's 100% Tariff Triggers ... (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-trumps-100-tariff-triggers-bitcoin-selloff-but-blockchain-strength-hints-at-recovery)
[7] Did Trump's Tariff Trigger A Crypto Purge Or Just A Panic? - Forbes (https://www.forbes.com/sites/digital-assets/2025/10/11/did-trumps-tariff-trigger-a-crypto-purge-or-just-a-panic/)
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