Bitcoin News Today: Trump Tariffs Force Crypto Deleveraging, $9.5B Liquidated in 24 Hours

The cryptocurrency market experienced a historic liquidation event on October 10, 2025, as U.S. President Donald Trump announced a 100% tariff on all Chinese imports, triggering a global "risk-off" selloff. Analytics firm CoinGlass reported nearly $9.55 billion in leveraged crypto positions liquidated within 24 hours, marking the largest such event in digital-asset history Finance-Monthly^[1]. Bitcoin (BTC) and Ethereum (ETH) bore the brunt of the collapse, with $1.37 billion and $1.26 billion in long positions erased, respectively. Bitcoin plummeted from $122,000 to $104,800, while Ether dropped 12% to $3,200 Finance-Monthly^[1]. The total crypto market capitalization fell 9% to $3.8 trillion, erasing $400 billion in value Finance-Monthly^[1].

The sell-off was precipitated by Trump's threat to impose the tariffs on November 1, 2025, in response to China's export controls on rare-earth materials. The move reignited fears of a trade war reminiscent of 2018–2019, causing immediate market panic. "This is how contagion starts," said a risk strategist at a major U.S. exchange, noting that cascading margin calls could spread beyond crypto into traditional markets Finance-Monthly^[1]. The S&P 500 and Nasdaq fell 2.7% and 3.6%, respectively, their worst performance since April Finance-Monthly^[1].

High leverage and thin liquidity exacerbated the crisis. Over 1.5 million traders were liquidated in 24 hours, with the largest single liquidation-a $87.53 million BTC/USDT position-occurring on HTX Exchange . Institutional deleveraging was evident, with Bloomberg Intelligence reporting early signs of forced sales. "Crypto now trades like a high-beta tech stock," said Mike McGlone of Bloomberg Intelligence, adding that Trump's tariff shock "punctured confidence across every speculative asset class" Finance-Monthly^[1].

The regulatory environment further compounded the crisis. U.S. spot crypto markets lack standardized margin or circuit-breaker regimes, unlike equities, allowing liquidations to spiral unchecked Finance-Monthly^[1]. Lee Reiners of Duke University's Global Financial Markets Center emphasized the absence of legal safeguards: "When leverage unwinds, there's nothing legally stopping it" Finance-Monthly^[1].

While the immediate impact was severe, some analysts noted signs of stabilization. Stablecoin inflows, particularly USDC, increased as traders rotated capital back into crypto, suggesting a potential rebound . Whale activity also indicated accumulation, with large wallets on platforms like Hyperliquid and OKX amassing positions . Zaheer Ebtikar of Split Capital warned, however, that "those positions don't come back," noting the liquidation event "resets the derivatives landscape completely" Finance-Monthly^[1].

The market's next move hinges on whether Trump delays the tariffs or China reverses its export restrictions. A relief rally is possible, but the scars of the liquidation event will linger. "This wasn't just a market correction-it was a forced deleveraging," said a trader analyzing the aftermath . As Bitcoin hovered near $111,000 with deeply negative funding rates, the crypto market braces for a volatile winter.