Bitcoin News Today: Trump's Tariffs Spark $19B Crypto Liquidation, Shiba Inu Burns Plummet 99%

The cryptocurrency market is reeling from a historic liquidation event and a dramatic slowdown in Shiba Inu's (SHIB) token-burning efforts, signaling heightened volatility and shifting investor sentiment. Over $19 billion in leveraged positions were liquidated in a 24-hour period, driven by geopolitical tensions and macroeconomic uncertainty, while SHIB's burn rate plummeted by 99.44%, raising concerns about its long-term value proposition.

The liquidation wave, the largest ever recorded in crypto, was triggered by U.S. President Donald Trump's announcement of 100% additional tariffs on Chinese imports, which sparked a global "risk-off" environment. On Hyperliquid, more than 1,000 wallets were fully liquidated, with 6,300 accounts posting losses, including 205 that shed over $1 million each. Bitcoin briefly dipped below $110,000, and the broader market, as measured by the CoinDesk 20 index, fell 15% at one point .

Meanwhile, SHIB's burn rate-a key metric for reducing its massive token supply-collapsed overnight. On-chain data shows only 2.8 million SHIB tokens were burned in 24 hours, a 99.44% drop from the 515 million burned previously. This decline threatens to undermine SHIB's deflationary strategy, which relies on consistent token removal to drive scarcity and value. Shiba Inu's lead developer, Shytoshi Kusama, emphasized that burns alone cannot sustain price growth without broader adoption and ecosystem development .

The burn rate's collapse coincides with SHIB's mixed price action. Despite a 15% recovery since March 11 lows, the token trades at $0.00001285, with technical indicators like the RSI hovering near overbought levels. Analysts warn that without renewed burning momentum, SHIB risks retracing to its March 11 floor of $0.00001102 .

The liquidation event underscores the fragility of leveraged positions in a volatile market. Derivatives trading volume hit a yearly high of $9.72 trillion in August, with platforms like Hyperliquid and Binance facing cascading liquidations as prices swung sharply. Experts note that extreme leverage-often exceeding 100x-amplifies losses during sudden market moves, creating a self-reinforcing cycle of selling .

Geopolitical and macroeconomic factors further complicate the outlook. The U.S. government shutdown has delayed key economic data, leaving traders in the dark about inflation and interest rate trends. Meanwhile, a stronger U.S. dollar (DXY index up from 96.2 to 98.99) has drawn capital away from crypto, exacerbating downward pressure .

Despite the turmoil, some analysts remain bullish. Bitget's Ryan Lee views the Bitcoin drop as a healthy correction, predicting a potential rebound to $132,000–$135,000 if key support holds. He highlights ETF inflows and the "debasement trade"-driven by rising fiscal deficits-as long-term tailwinds for Bitcoin .

For SHIB, the path forward hinges on balancing token burns with utility-driven growth. Kusama has pointed to DeFi projects within the Shiba Inu ecosystem as critical for sustainable value creation, though risks remain if burning slows further .

As markets stabilize, the interplay between geopolitical events, leverage levels, and tokenomics will likely dictate the next chapter for crypto. Traders are advised to adopt cautious strategies, including tighter stop-losses and diversified portfolios, to navigate the unpredictable landscape.

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[1] This is the Full Title of the First News Article (https://www.gate.com/crypto-market-data/funds/liquidation-data)

[2] This is the Full Title of the Second News Article (https://www.okx.com/learn/crypto-liquidations-2025-bitcoin-recovery)

[3] Over $489M in Crypto Longs Liquidated as Bitcoin, Ethereum ... (https://decrypt.co/343371/over-489m-in-crypto-longs-liquidated-as-bitcoin-ethereum-extend-losses)

[4] "Burning 99% Isn't Enough," Says Shytoshi Kusama – ... (https://coinedition.com/shiba-inus-1-dream-can-a-99-burn-make-it-happen/)

[5] Shiba Inu (SHIB) Burns Tank 99%: What's Killing The Fire? (https://dailycoin.com/shiba-inu-shib-burns-tank-99-whats-killing-fire/)

[6] Shiba Inu Burn Update: 99.44% Daily Burn Crash Could ... (https://www.tradingview.com/news/newsbtc:83d6b0622094b:0-shiba-inu-burn-update-99-44-daily-burn-crash-could-spell-trouble-for-meme-coin/)

[8] 'Largest Ever' Crypto Liquidation Event Wipes Out 6,300 ... (https://www.coindesk.com/markets/2025/10/11/largest-ever-crypto-liquidation-event-wipes-out-6-300-wallets-on-hyperliquid)