Bitcoin News Today: Trade War Fears Expose Crypto Leverage Fragility in $19B Liquidation Wave

The global cryptocurrency market experienced its largest liquidation event in history on October 10, 2025, as U.S. President Donald Trump's threat of 100% tariffs on Chinese imports triggered a $19.1 billion wipeout of leveraged positions. The sell-off, driven by renewed U.S.-China trade war tensions, saw Bitcoin (BTC) plunge to $102,000-a 10% drop-and Ethereum (ETH) fall 12.4% to $3,844, according to Coinglass data . Over 1.6 million traders were liquidated across major exchanges, with long positions accounting for $16.6 billion of the total losses . The cryptocurrency market capitalization fell to $3.86 trillion, a 9.1% decline in 24 hours .

The crisis was precipitated by Trump's announcement of sweeping 100% tariffs on Chinese goods, escalating trade tensions after Beijing imposed export controls on rare earth minerals. This move reignited fears of a prolonged economic standoff, causing a broader risk-off sentiment across asset classes. U.S. equities mirrored the turmoil, with the S&P 500 and Nasdaq falling 2.7% and 3.5%, respectively, while gold prices surged 1.7% as investors flocked to safe-haven assets .

Altcoins bore the brunt of the liquidation cascade. Solana (SOL), Cardano (ADA), and XRP each fell 15–49%, while Sroty (IP) plummeted 49% in 24 hours . The largest single liquidation occurred on Hyperliquid, where a $203 million long position in ETH-USDT was erased . Exchange infrastructure faced strain as Binance and Coinbase reported degraded performance amid surging trading volumes .

The liquidation data highlights the fragility of leveraged positions during macroeconomic shocks. Over $770 million in liquidations were recorded in the 24 hours preceding the crash, with Ethereum and Bitcoin leading losses at $233 million and $180 million, respectively . Analysts attribute the market's extreme volatility to thin order books and synchronized sell-offs, exacerbated by the geopolitical uncertainty .

The U.S. government shutdown further compounded uncertainty by delaying key economic data releases, leaving traders without critical indicators during the crisis. Ethena's USDe stablecoin briefly dipped below $1, illustrating the instability in derivatives markets .

Sources:

[1] Coindesk (https://www.coindesk.com/markets/2025/10/10/usd16b-in-longs-liquidated-as-wall-street-sell-off-extends-btc-eth-broader-crypto-market-meltdown)

[2] Yahoo Finance (https://finance.yahoo.com/news/crypto-markets-crash-us-china-213610858.html)

[3] Cointelegraph (https://cointelegraph.com/explained/how-trade-wars-impact-stocks-and-crypto)

[4] Coinspeaker (https://www.coinspeaker.com/770m-liquidations-hit-the-market-as-trump-threatens-more-tariffs-on-china/)

[5] Cryptobriefing (https://cryptobriefing.com/leveraged-positions-liquidation-crypto-bloodbath/)

[6] Bitcoinsensus (https://www.bitcoinsensus.com/news/bitcoin/how-the-new-trump-china-rift-led-to-the-highest-liquidations-in-crypto-history)

[7] Coingabbar (https://www.coingabbar.com/en/crypto-currency-news/crypto-market-update-oct-11-cryptocurrency-price-crash-today)