Bitcoin News Today: Trump Tariffs Test Crypto's Resilience as $7B Vanishes in Crash

Bitcoin fell below $110,000 on October 10, 2025, marking its steepest one-day decline of the year after U.S. President Donald Trump announced a 100% tariff on Chinese goods effective November 1. The move triggered a flash crash in crypto markets, with Bitcoin dropping 12% in 24 hours and Ether (ETH) plunging 16% to $3,700. Altcoins like XRP, Solana (SOL), and Dogecoin (DOGE) fell 20%-30%, while ADA, Chainlink (LINK), and Aave (AAVE) declined as much as 40%. Over $7 billion in liquidations occurred, according to CoinGlass, as leveraged traders faced panic selling.

The tariff threat exacerbated existing "overbought" conditions in crypto markets, prompting a risk-off selloff across all major asset classes. The broader crypto market cap fell to $3.6 trillion from $4.1 trillion, with every sector-from DeFi to AI tokens-affected. Technical analysis highlighted Bitcoin's collapse below key support levels, including the 50-day simple moving average ($114,500), signaling a sharp momentum shift. The price briefly touched $111,350, near a critical $110,000 support cluster, with further downside risks toward the 200-day SMA ($106,600).

The market reaction mirrored past Trump-driven volatility. In April 2025, similar tariff threats caused Bitcoin to drop 5.4% in a single day to $74,500, though a 90-day pause allowed for partial recovery. Analysts attributed the latest crash to renewed fears of a global trade war, which could disrupt supply chains and inflation control-key concerns for crypto investors. "The Trump news combined with 'overbought' conditions led to a sharp decline," said Ram Ahluwalia of Lumida Wealth, while trader Pentoshi noted the crash resembled the March 2020 pandemic-induced sell-off.

Institutional traders also reduced exposure, with funding rates flipping negative and futures markets showing increased short positions. The Nasdaq, S&P 500, and Dow all fell 1.2%-1.77% on the day, reflecting broader macroeconomic uncertainty. Meanwhile, the U.S. government shutdown and pending September 2025 Consumer Price Index data added to market jitters.

Despite the turmoil, some analysts remain cautiously optimistic. Michael Saylor of MicroStrategy emphasized Bitcoin's "resilience," noting its decentralized nature insulates it from trade policies. Anthony Pompliano predicted year-end all-time highs for Bitcoin and stocks, viewing tariffs as a catalyst for long-term growth. However, with Bitcoin's on-chain exchange balances at a 7-year low and altcoin outperformance waning, the market faces a critical test of its recovery potential.