Bitcoin News Today: Trade War "Nuke" Triggers $400B Crypto Crash in 24 Hours

The global cryptocurrency market experienced a sharp sell-off of approximately $400 billion in value following renewed U.S.-China trade tensions, triggered by President Donald Trump's announcement of a 100% tariff on Chinese imports and additional export controls on critical software. The policy shift, announced on October 10, 2025, sent shockwaves through financial markets, with Bitcoin (BTC) plummeting from a peak of $126,000 to under $107,000 within hours, erasing nearly $12,000 from its price in minutes. Ethereum (ETH), XRP, Solana (SOL), and other major altcoins suffered even steeper declines, with combined liquidations exceeding $9.6 billion in a 24-hour period-the largest single-day wipeout in crypto history Forbes^[1].

The market turmoil was exacerbated by pre-existing overbought conditions and leveraged positions, which amplified the impact of Trump's surprise announcement. CoinGlass data revealed $7.4 billion in liquidations across the crypto market within 24 hours, with Bitcoin and Ethereum accounting for $3.3 billion of the losses. Altcoins, including XRP and Dogecoin (DOGE), saw price drops of 20%-30%, while smaller tokens like ADA and LINK fell as much as 40% CoinDesk^[2]. The total crypto market capitalization contracted from $4.25 trillion to $4.05 trillion, wiping out $200 billion in value within hours of the tariff announcement BeInCrypto^[3].

Analysts attributed the crash to the heightened risk-off sentiment, as investors fled speculative assets in favor of traditional safe-havens like gold and U.S. Treasuries. The S&P 500 and Nasdaq indices fell 1.6% and 1.3%, respectively, while oil prices dropped to their lowest since May 2025. Derivative traders faced massive forced liquidations, with $5.5 billion in long positions wiped out in a single hour Forbes^[1]. The volatility mirrored patterns seen during the 2020 pandemic crash, with some traders labeling the event a "Covid-level nuke" for its rapid and severe impact CoinDesk^[2].

The trade tensions marked a shift from rhetoric to concrete policy, escalating the conflict to its highest point since 2019. Trump's tariffs, coupled with export controls on critical software, signaled a full-scale confrontation with China, which had previously imposed rare earth mineral export restrictions. Market watchers warned that the policy could strain global supply chains for semiconductors and blockchain infrastructure, deepening uncertainty in sectors underpinning digital assets BeInCrypto^[3].

Despite the short-term pain, some analysts highlighted long-term implications. Grayscale's research team suggested that tariffs could weaken the U.S. dollar's dominance, potentially elevating Bitcoin's role as a global reserve asset. However, immediate concerns revolved around the correlation between crypto and traditional risk assets. "In periods of broad-based derisking, crypto tends to get hit as investors pull out of the most speculative and volatile assets," one analyst noted .

The market's next direction hinges on whether Beijing responds with retaliatory measures or reopens negotiations. For now, traders brace for a volatile weekend, with Bitcoin testing key psychological levels and altcoins remaining under pressure.