Bitcoin News Today: Trump's Tariffs Spark $19B Crypto Collapse as Bitcoin Tests $100K Survival Line

Bitcoin faced a historic market upheaval in early October 2025, with a record $19.1 billion in liquidations wiping out 1.6 million traders and sending total crypto market capitalization tumbling $400 billion to $3.74 trillion Crypto Market Hit by $19B Liquidation, $400B Wipeout^[1]. The crisis was triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports and export controls on critical software, sparking a synchronized collapse across equities and cryptocurrencies . Bitcoin dropped from $122,000 to $101,500 within hours, while Ethereum and altcoins like XRP, DOGE, and ATOM saw intraday losses exceeding 99% Crypto Market Hit by $19B Liquidation, $400B Wipeout^[1]. Hyperliquid, a derivatives platform, processed $10.28 billion in liquidations, with long positions accounting for 88% of the total Crypto Market Hit by $19B Liquidation, $400B Wipeout^[1].

The Fed's 25-basis-point rate cut on September 17, 2025, initially failed to buoy Bitcoin, which remained near $116,000 amid concerns over Trump's trade war rhetoric Trump Crashes Crypto Markets With 100% Tariff On …^[7]. Analysts noted that while the rate cut was priced in, the market's focus shifted to geopolitical risks. Gold surged to $4,000 per ounce as investors flocked to safe havens, contrasting with Bitcoin's struggles Bitcoin (BTC) Price News: Bulls Stifled Again - CoinDesk^[5].

Technical indicators highlighted Bitcoin's fragility. The RSI hit levels not seen since February's trade war escalation, and key support at $100,000 came under pressure Bitcoin wobbles at $110K as trader says $20B liquidation rout not …^[3]. CoinGlass data suggested actual liquidations could exceed $30 billion due to delayed reporting on exchanges like Binance and Bybit Crypto Market Hit by $19B Liquidation, $400B Wipeout^[1]. Despite a partial recovery to $113,000, Bitcoin's 24-hour volatility and $120,000 resistance level-once a psychological benchmark-became a focal point for traders .

Market participants debated whether the selloff marked the end of the bull cycle or a technical correction. Vincent Liu of Kronos Research attributed the crash to "leverage as gasoline," while Arthur Hayes suggested a "structural reset" for altcoins Crypto Market Hit by $19B Liquidation, $400B Wipeout^[1]. JPMorgan analysts maintained a bullish outlook, forecasting $165,000 by year-end if ETF inflows continued Crypto’s $200 Billion Crash: Can Bitcoin Hope to Recover?^[4]. Meanwhile, critics warned of systemic risks, with Morgan Stanley's Edul Patel noting that October corrections historically precede relief rallies .

Looking ahead, Bitcoin's trajectory hinges on macroeconomic clarity. The Fed's next rate decision and U.S.-China trade negotiations will be pivotal. A $100,000 retest and potential $120,000 breakout remain critical, with institutional adoption and ETF inflows offering long-term support Crypto’s $200 Billion Crash: Can Bitcoin Hope to Recover?^[4]. However, excessive leverage and geopolitical tensions underscore the need for risk management in a market increasingly tethered to global macro forces .