Bitcoin News Today: Trump's Tariff Threats Trigger $19B Crypto Liquidations Amid Market Chaos

Bitcoin's price plunged below $102,000 on October 8, 2025, triggering over $19.29 billion in liquidations as global markets reacted to U.S. President Donald Trump's renewed threat of 100% tariffs on Chinese imports Coindesk^[1]. The sell-off, fueled by escalating trade war fears, saw leveraged long positions in Bitcoin and other cryptocurrencies wiped out in a matter of hours, with over $16.7 billion of the total liquidations attributed to longs Coindesk^[1]. Ethereum and Solana also suffered sharp declines, with ETH dropping nearly 8% to $3,975 and SOL falling over 7% to $205 Decrypt^[2].

The collapse was exacerbated by the U.S. government shutdown, which delayed the release of critical economic data, heightening uncertainty among traders Coindesk^[1]. CoinDesk data revealed that the total crypto market cap fell to $3.87 trillion, while Ethena's algorithmic stablecoin, USDe, temporarily deviated from its $1 peg, reaching $0.9996 amid volatile derivatives markets Coindesk^[1]. The Ethena team confirmed that minting and redemptions remained operational, citing increased overcollateralization as unrealized gains from short positions were realized Coindesk^[1].

Technical analysis highlighted Bitcoin's consolidation near a key demand zone of $108,000–$114,000, a historically significant range preceding late-year rallies . Despite a brief recovery to $113,294, BTC's 24-hour decline of 10% underscored the fragility of investor sentiment Coindesk^[1]. The cryptocurrency had previously surged to an all-time high of $126,272 on October 6, but the subsequent retreat saw 342.77 BTC (worth $41.8 million) moved from dormant wallets, signaling strategic repositioning by long-term holders FxLeaders^[3].

The liquidation wave extended to other major assets, with BNB bucking the trend by incurring only $13 million in liquidations, prompting accusations of market manipulation Blockchain News^[7]. Meanwhile, the broader financial markets mirrored crypto's turmoil, with the Nasdaq down 3%, the S&P 500 falling 2.3%, and the Dow dropping 1.6% Decrypt^[2]. Analysts noted that cascading liquidations often act as contrarian indicators, with large-scale forced exits typically preceding trend reversals Coinotag^[6].

Looking ahead, Bitcoin's path depends on macroeconomic catalysts, including the likelihood of a Federal Reserve rate cut in September 2025, which traders price at 86.4% . Institutional buying, such as MicroStrategy's $51.4 million purchase of 430 BTC, provided some floor support, but bearish momentum indicators like the MACD and RSI suggested caution . The cryptocurrency's ability to break above $110,000 could determine whether the current consolidation leads to a sustained rally or further declines .