Bitcoin News Today: Trump Tariffs Spark $9.5B Crypto Sell-Off, Bitcoin Tumbles Below $120K

Bitcoin experienced a significant sell-off in late October 2025, with over $9.5 billion in liquidations across the cryptocurrency market, according to CoinGlass data Coindesk^[6]. The selloff, triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports, pushed Bitcoin below $119,000 , erasing gains from its recent record highs above $126,000 Forbes^[1]. The sharp decline saw 79.3K BTC sold at a loss within 24 hours, marking the largest Bitcoin sell-off of 2025 Bitcoinist^[4].

The price drop strained major exchanges, including Binance and Coinbase, which reported system outages and latency issues as the market reeled from the volatility . Binance acknowledged "severe strain" on its systems, while Coinbase noted "degraded performance" during the crisis. The sell-off wiped $250 billion from the total crypto market capitalization, with Bitcoin and Ethereum accounting for the largest liquidations-$1.37 billion and $1.26 billion, respectively Coindesk^[6].

Analysts attributed the selloff to a combination of factors. Trump's tariff escalation, coupled with China's export controls on rare earth metals, intensified risk-off sentiment globally . Additionally, on-chain data highlighted weak short-term holder (STH) positions, with 80K BTC sold at a loss as traders capitulated amid falling prices Stocktwits^[5]. "The market is experiencing a classic 'buy the rumor, sell the news' scenario," noted one trader, emphasizing the fragility of leveraged positions .

The selloff also exposed structural vulnerabilities in the crypto market. For instance, the HTX exchange faced a single liquidation of $87.53 million in BTC/USDT, underscoring the concentration of risk in leveraged trading Coindesk^[6]. Meanwhile, long-term holders remained relatively untouched, with their positions stable despite the turmoil Stocktwits^[5].

Retail sentiment, as tracked by platforms like Stocktwits, dipped into "bearish" territory, with users debating whether the market had bottomed or faced further declines Stocktwits^[5]. The impact extended to crypto-related stocks, with companies like MicroStrategy (MSTR), Coinbase (COIN), and Binance-linked entities experiencing double-digit declines .

Despite the immediate pain, some analysts see potential for a rebound. Deribit's Jean-David Péquignot suggested the pullback to $118,000–$120,000 could create a buying opportunity, aligning with favorable macroeconomic conditions Coindesk^[2]. However, caution persists, as the market remains sensitive to geopolitical tensions and regulatory shifts.