Bitcoin News Today: Trump's Tariffs and Macro Risks Spark Record $19B Crypto Liquidations

The cryptocurrency market experienced a significant downturn in early October 2025, with over $19 billion in long positions liquidated amid heightened volatility. This sharp decline followed a combination of macroeconomic pressures and influential commentary from high-profile financial figures, including CNBC's Jim Cramer. The total crypto market cap fell to $3.87 trillion, with Bitcoin (BTC) and Ethereum (ETH) dropping by 10% and 7.5%, respectively, within 24 hours Crypto Price Drop Continues: $16B in Longs Liquidated as BTC, …^[1]. The liquidations surpassed previous record events, including the 2022 FTX collapse and the 2020 pandemic crash, by a factor of 10 Crypto Price Drop Continues: $16B in Longs Liquidated as BTC, …^[1].

The sell-off was exacerbated by U.S. President Donald Trump's Truth Social post threatening 100% tariffs on Chinese imports, triggering a global risk-off sentiment. This macro shock amplified existing trader anxieties, particularly as the U.S. government shutdown delayed critical economic data releases, leaving markets to navigate without official indicators Crypto Price Drop Continues: $16B in Longs Liquidated as BTC, …^[1]. CoinGlass noted that the actual liquidation volume was likely higher, as major exchanges like Binance delayed reporting Crypto Price Drop Continues: $16B in Longs Liquidated as BTC, …^[1].

Jim Cramer's market commentary further influenced the downturn. In September, Cramer highlighted historically weak performance in September for crypto and stocks, advising caution. His bearish stance aligned with a broader market sentiment, leading to a 5.9% monthly decline in Bitcoin and a 3.3% drop in the total crypto market cap Cramer Bearish on Crypto: Fear Prevents Monday Rebound?^[4]. However, Cramer's track record as a contrarian indicator-often dubbed the "Inverse Cramer" strategy-has historically driven market rebounds. For instance, the Inverse Cramer ETF (SJIM), though short-lived, demonstrated that betting against his calls yielded a 31.8% return between March 2024 and March 2025, outperforming the S&P 500's 8.28% gain .

Cramer's recent bullish shift also added complexity. In July 2025, he positioned Bitcoin and Ethereum as hedges against U.S. debt and a weakening dollar, stating he personally owned both for his children's financial security Jim Cramer Says Bitcoin and Ethereum are a Hedge Against U.S. Bebt: Is This True?^[5]. This marked a reversal from his earlier skepticism, reflecting growing mainstream acceptance of crypto as a long-term store of value. Despite volatility concerns, his endorsement signaled a recalibration in how traditional investors view digital assets Jim Cramer Says Bitcoin and Ethereum are a Hedge Against U.S. Bebt: Is This True?^[5].

The market's mixed response underscored the tension between macroeconomic risks and institutional interest. While the U.S. government shutdown and trade war rhetoric fueled short-term panic, potential Fed rate cuts in September and October-driven by cooling inflation-offered a recovery path. Bitcoin's historical October performance, with a 73% positive close rate over the past 15 years, further fueled cautious optimism Bitcoin, Ethereum and XRP Price Prediction For October 2025^[3]. Additionally, XRP's potential ETF approvals in October could trigger institutional inflows, potentially doubling its market cap Bitcoin, Ethereum and XRP Price Prediction For October 2025^[3].