Bitcoin News Today: Trade War Fears Spark $19B Crypto Crash as BTC Dips Below $110K Support

Bitcoin (BTC) and major altcoins experienced significant volatility following U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, reigniting fears of a global trade war and triggering a sharp market selloff. On October 10, 2025, Bitcoin dropped below $110,000, marking a 12% decline over 24 hours, while Ether (ETH) fell to $3,700-a 16% drop-and altcoins like XRP, Solana (SOL), and Dogecoin (DOGE) lost 20%-30% of their value. The selloff resulted in over $19 billion in crypto liquidations, the largest since the April 2024 Bitcoin halving, according to CoinGlass Coindesk^[1].

The U.S.-China trade tensions, exacerbated by Trump's threat to impose reciprocal tariffs and export controls on critical software starting November 1, created a risk-off environment. This volatility extended to traditional markets, with the S&P 500 (SPX) and U.S. Dollar Index (DXY) also reacting sharply. The SPX closed below its 20-day exponential moving average, signaling profit-taking, while DXY rose above moving averages, indicating waning bearish momentum Cointelegraph^[6].

Bitcoin's price action revealed a critical support zone around $107,000–$100,000. Analysts noted that institutional inflows through U.S.-listed Bitcoin ETFs, particularly BlackRock's iShares Bitcoin Trust (IBIT), remained robust, with cumulative inflows exceeding $50 billion since 2024. Fundstrat's Tom Lee characterized the pullback as a "buying opportunity," emphasizing blockchain and AI as long-term drivers Brave New Coin^[3]. If Bitcoin holds above $107,000, it could retest $115,000–$120,000 resistance, with a potential path toward its all-time high near $124,000.

Altcoins faced mixed prospects. Ethereum (ETH) rebounded to $4,000 after hitting a 24-hour low of $3,700 but remains under pressure near its 20-day EMA. Solana (SOL) tested support at $168, with a break below $155 signaling deeper correction risks. XRP's 50 EMA at $2.77 acted as a short-term resistance, while Cardano (ADA) consolidated above $0.70 after forming a double bottom at $0.55 .

The U.S. Dollar Index (DXY) closed above 100, reflecting diminished bearish pressure, though analysts warned that a sustained move above 100.50 could test 102. Conversely, a close below the 20-day EMA (98.26) might push the index to 96.21 Cointelegraph^[6]. The S&P 500's correction to 6,350–6,200 levels could deepen if bears reassert control, though a close above the 20-day EMA suggests a potential retest of its all-time high of 6,764 Cointelegraph^[6].

- Support at $107,000, resistance at $116,955. A break above $121,020 could target $126,199 Cointelegraph^[6].

- Support at $3,700, resistance at $4,957. A break above $2,329 could test $2,711 .

- Consolidating at $1,034, with resistance at $1,350 and potential targets at $1,609 if bulls reclaim the 20-day EMA Cointelegraph^[6].

- Critical support at $2.00, with resistance at $2.10 and potential to reach $2.20 if the 20-day EMA is cleared .

- Support at $120, resistance at $135. A break above $140 could target $180 .

BitMEX co-founder Arthur Hayes acknowledged the short-term pain but argued that tariffs could benefit Bitcoin and gold in the medium term. Conversely, Byzantine General warned that tariff retaliation might cap crypto gains . Charles Edwards of Capriole Investments highlighted Bitcoin's potential bullish turn if it breaks above $91,000, though a failure to hold $80,000 could push it to $71,000 .

The market's next move will hinge on macroeconomic stability, ETF inflows, and trade tensions. If confidence returns and key support levels hold, this pullback could represent a mid-cycle correction rather than a trend reversal, setting the stage for renewed bullish momentum.