Bitcoin News Today: Trade War Fears and Profit-Taking Drive $200B Crypto Market Cap Dive

The global cryptocurrency market experienced a sharp selloff following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, triggering nearly $9 billion in liquidations and a 10% decline in Bitcoin's price. The trade war escalation, which took effect on November 1, 2025, sent shockwaves across risk assets, with Bitcoin (BTC) dropping to $107,000 from a peak of $126,272 just days earlier CoinDesk^[4].

Derivatives platforms reported over $635 million in liquidated leveraged positions within 24 hours, with long positions accounting for $489 million of the total Yahoo Finance^[3]. Ethereum (ETH) and other altcoins fared worse, with ETH plummeting 15% to $3,900 as traders scrambled to unwind positions . The total crypto market capitalization fell to $3.87 trillion from $4.25 trillion, erasing $200 billion in value CoinDesk^[4].

The liquidation data reflects a cascade of margin calls on leveraged positions, particularly in BTC and ETH. Coinglass recorded $16.7 billion in liquidations across top crypto assets, with nearly $19.1 billion in long positions wiped out . Over 210,000 traders were liquidated in the 24-hour period, including a $15.49 million single-trade liquidation on Hyperliquid . The sell-off intensified as the U.S. government shutdown delayed key economic data releases, exacerbating uncertainty .

Analysts attributed the downturn to a combination of profit-taking after recent record highs and macroeconomic fears. Bitcoin had surged to $126,272 on October 6, prompting investors to secure gains FXLeaders^[2]. The renewed trade war fears, however, shifted sentiment to risk-off, with gold surging over 1% as investors sought safe-haven assets CoinDesk^[5].

The impact extended beyond crypto, with the S&P 500 and Nasdaq down 1.6% and 1.3%, respectively, and WTI crude oil falling 4% CoinDesk^[5]. The U.S. dollar index (DXY) hit 98.989, its highest level since September Yahoo Finance^[3].

Long-term holders and whales also adjusted their strategies, with on-chain data showing 342.77 BTC ($41.8 million) moved from dormant wallets, including transfers to flagged Kraken addresses FXLeaders^[2]. This activity suggested strategic repositioning amid market volatility.

Despite the short-term pain, some analysts view the correction as a necessary reset. Ryan Lee of Bitget noted that a 3%-4% pullback could stabilize Bitcoin before a potential rebound to $132,000–$135,000 if key support levels hold Yahoo Finance^[3]. The Debasement trade-driven by rising fiscal deficits and demand for inflation-resistant assets-remains a structural tailwind for Bitcoin Yahoo Finance^[3].