Bitcoin News Today: Trump's Tariffs Spark $19B Crypto Black Swan as Trade War Rekindles

The cryptocurrency market experienced its largest single-day liquidation event in history on October 10, 2025, with over $19 billion in leveraged positions wiped out as U.S. President Donald Trump announced a 100% tariff on Chinese imports. The move, triggered by Trump's response to China's export restrictions on rare earth materials, caused Bitcoin to plummet more than 12% to as low as $102,000, while Ethereum and major altcoins faced even sharper declines. Over 1.6 million traders were liquidated across major exchanges, according to data from Coinglass Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1].

The abrupt sell-off was driven by a combination of geopolitical tensions and pre-existing leverage in the market. Trump's tariffs reignited the U.S.-China trade war, sending shockwaves through global financial markets. The S&P 500, Nasdaq, and Dow Jones all recorded their largest drops in months, with risk-off sentiment spreading to cryptocurrencies. Analysts highlighted that institutional over-leverage in perpetual futures exacerbated the crisis, as cascading liquidations accelerated price declines. "This was a black swan event," said David Jeong, CEO of Tread.fi, adding that many institutions were unprepared for the volatility Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1]. Vincent Liu, CIO at Kronos Research, noted that while the initial trigger was tariff fears, "the sell-off was fueled by institutional over-leverage" Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1].

Bitcoin's price action underscored the severity of the crash. After reaching an all-time high of $125,000 earlier in the week, it fell below $113,000 by Saturday morning, with some exchanges reporting intraday dips to $102,000. The largest single liquidation occurred on Hyperliquid, where a $203 million Ethereum trade was erased Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1]. The global crypto market cap contracted from $4.2 trillion to $3.8 trillion, and the Crypto Fear & Greed Index shifted from "Greed" to "Fear" Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1].

Altcoins were hit disproportionately. Ethereum dropped 16%, Solana and Cardano fell 15–49%, and smaller tokens like Sroty ($IP) lost over 49% in 24 hours. The total market capitalization of cryptocurrencies fell from $4.27 trillion to $3.26 trillion, erasing $880 billion in value How the New Trump–China Rift Led to the Highest Liquidations in …^[3]. Analysts warned of potential contagion risks across firms, as leveraged positions continued to unwind Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1].

The Trump administration's tariff announcement was framed as a direct response to China's export controls on rare earth materials, which Trump described as "unheard of in international trade" and "a moral disgrace." The 100% tariff on Chinese goods, effective November 1, marked a significant escalation in the trade dispute. This move, combined with export restrictions on critical software, confirmed a full-scale confrontation between the two nations. Market observers warned that the combined impact of tariffs and export controls could strain global supply chains, particularly in semiconductors, AI, and blockchain infrastructure .

Despite the chaos, some market participants saw opportunities. Arthur Hayes, co-founder of BitMEX, suggested the crash had created rare buying opportunities for high-quality assets. "Congrats to all you stink bidders," he tweeted, noting that such levels might not reappear soon Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1]. Meanwhile, traders are closely monitoring Bitcoin's key support level at $100,000. Caroline Mauron of Orbit Markets warned that a break below this threshold could signal the end of the three-year bull cycle Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1].

The event underscores the growing interconnectedness between macroeconomic factors and crypto markets. Institutional participation and leveraged trading have amplified the impact of geopolitical shocks, as seen in the rapid unwinding of positions. Experts emphasized the need for caution, with Brian Strugats of Multicoin Capital highlighting the risk of contagion if the trade dispute escalates further Crypto Liquidation hits $19B as Trump’s China Tariff ... - Coinpedia^[1].