Bitcoin News Today: Trump's Tariff Shockwave Triggers $9B Crypto Liquidation as Trade Tensions Boil Over

The cryptocurrency market experienced its most significant liquidation event on October 10, 2025, as U.S.-China trade tensions escalated following President Donald Trump's announcement of a 100% tariff on Chinese imports effective November 1. The move triggered a cascading sell-off, with over $9 billion in leveraged positions liquidated across major exchanges, according to data from CoinGlass. Bitcoin (BTC) plummeted from above $122,000 to $107,000, while Ethereum (ETH) dropped to $3,975, erasing approximately 8% of its value. The total crypto market capitalization fell from $4.25 trillion to $4.05 trillion within hours, marking a $200 billion loss Trump’s China tariff sends crypto exchanges into emergency mode^[6].

The liquidation surge was concentrated in highly leveraged long positions, with Ether accounting for $235 million in wiped-out bets, as reported by CoinGlass Ether's 7% Plunge Leads Crypto Liquidations in $600M Carnage^[1]. The crash was exacerbated by the breakdown of critical technical support levels for ETH, including a key resistance at $4,287 and failed recovery attempts at $4,141 Ether's 7% Plunge Leads Crypto Liquidations in $600M Carnage^[1]. Meanwhile, Bitcoin's price action mirrored broader market panic, breaching the 50-day simple moving average at $114,500 and testing support near $110,000 Doctor Profit: Bitcoin Bull Run Far From Over^[9].

The U.S. stock market also suffered, with the S&P 500 and Nasdaq indices falling by 2.3% and 3%, respectively, as investors shifted to cash and stablecoins Bitcoin Crashes Hard After Trump’s 100% Tariff on China …^[7]. Binance and Coinbase reported system strain and latency during the turmoil, though both exchanges assured users of fund safety Doctor Profit Closes Shorts, Opens $10M Bitcoin Long With 30x …^[8]. Analysts attributed the crash to a combination of overleveraged positions and macroeconomic fears, with some comparing the event to the March 2020 crypto market collapse 100% Tariff on China: Market Crash, Crypto Liquidated^[5].

Despite the immediate pain, some market participants view the crash as a catalyst for long-term bullish trends. Doctor Profit, a prominent crypto analyst, noted that the liquidation event could signal a "mother of shakeouts," potentially paving the way for a new bull run. He highlighted Bitcoin's technical indicators, including a Golden Cross and higher highs/lows since its $74,000 low, as signs of sustained momentum . Similarly, BlackRock's IBIT spot Bitcoin ETF recorded $2.3 billion in inflows over a week, suggesting institutional confidence .

The path forward, however, remains uncertain. Trump's trade policies and potential Chinese retaliatory measures could prolong volatility. Analysts caution that further liquidations may occur if Bitcoin retests the $100,000 psychological level, while a successful rebound above $115,000 could reignite bullish sentiment Doctor Profit: Bitcoin Bull Run Far From Over^[9].