Bitcoin News Today: Trade Fears and Leverage Trigger $19B Crypto "Black Swan"

The cryptocurrency market experienced its largest single-day liquidation event in history on October 10, 2025, as Bitcoin (BTC) and other digital assets plummeted following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports. Data from Coinglass and Valuermarket revealed that over $19 billion in leveraged positions were liquidated within 24 hours, with long positions accounting for nearly $17 billion of the losses. The crash affected more than 1.6 million traders, a figure far exceeding typical liquidation volumes of around 200,000 traders during previous downturns Bitcoin Crash Sparks Largest Liquidation in Crypto History – $19B Gone and Counting^[1].

Bitcoin's price dropped from a peak of over $122,000 to as low as $101,000 on some exchanges, erasing nearly $250 billion in total crypto market capitalization. The collapse was exacerbated by high leverage in perpetual futures markets, with Hyperliquid reporting a single liquidation of $203 million in an Ethereum (ETH)-USDT trade. Altcoins were equally hard-hit, with Ethereum falling below $3,500 and Solana (SOL), XRP, and Cardano (ADA) suffering double-digit declines Crypto Liquidation hits $19B as Trump’s China Tariff Triggers Market Crash^[2].

The trigger for the crash was Trump's threat to impose additional tariffs on China, reigniting fears of a trade war. The announcement sent shockwaves across global markets, with the S&P 500 and Nasdaq also experiencing sharp declines. Analysts attributed the crypto sell-off to a combination of geopolitical uncertainty and institutional over-leverage. David Jeong, CEO of Tread.fi, described the event as a "black swan" that exposed vulnerabilities in leveraged positions, while Vincent Liu of Kronos Research noted that the crisis was "sparked by U.S.-China tariff fears but fueled by institutional over-leverage" Today’s $19B Crypto Meltdown - Complete Timeline - BITBBQ^[3].

Despite widespread losses, some traders capitalized on the volatility. A whale on Hyperliquid reportedly closed 90% of its BTC short and fully liquidated its ETH short position, generating a $200 million profit. Another trader, identified by on-chain analytics, secured $160 million in gains by shorting ahead of Trump's announcement. These profits contrasted with the broader market carnage, where over 350 accounts lost their entire balances, including one trader who lost $19 million Whale bags $160M by shorting ahead of Trump’s China tariff^[4].

The liquidation wave underscored crypto's growing integration with traditional markets. As Bitcoin's price fell below $113,000, exchanges like Binance and Coinbase faced system strains, with Binance reporting one liquidation per second. Experts warned of potential contagion risks, with Brian Strugats of Multicoin Capital cautioning that the collapse could spread beyond crypto into equities and commodities if collateral values continued to decline Trump’s China tariff sends crypto exchanges into emergency mode^[5].

Market analysts remain divided on the long-term implications. While some view the crash as a necessary correction to reset leverage levels, others fear a deeper bearish trend if trade tensions persist. Caroline Mauron of Orbit Markets highlighted that a break below Bitcoin's $100,000 support level could signal the end of the three-year bull cycle. Meanwhile, Arthur Hayes of BitMEX suggested the turmoil created "rare buying opportunities" for high-quality assets, though recovery will depend on regulatory clarity and risk appetite $11B OG Bitcoin whale bets on BTC, ETH correction with $900M^[6].