Bitcoin News Today: Trump Tariffs Trigger $1.2T Equity, $125B Crypto Plunge as Bitcoin Dominance Deepens

Bitcoin's recent dominance has triggered a sharp sell-off in altcoins, with Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) experiencing significant declines amid a surge in liquidations. According to Coinglass data, total crypto liquidations reached $897 million in the 24 hours ending October 10, with Bitcoin accounting for $162.84 million of the total, followed by ETH at $265.71 million. The altcoin market saw XRP liquidations at $28.03 million, SOL at $40.27 million, and DOGE at $25.39 million .

The selloff coincided with U.S. President Donald Trump's announcement of potential "massive" tariffs on Chinese imports, which triggered a broader market panic. Bitcoin fell below $118,000 for the first time in weeks, while ETH dropped to $4,104, and SOL and XRP each lost over 2% in value . The crypto market capitalization contracted by $125 billion within hours, mirroring traditional equity market declines as the S&P 500 erased $1.2 trillion in value during the same period .

Long positions bore the brunt of the liquidations, with $670 million in leveraged longs wiped out in the 24-hour period. Coinglass data highlighted Bitcoin as the most liquidated asset, with $152.68 million in long positions and $10.16 million in shorts closed . Altcoin liquidations were similarly lopsided, with XRP seeing $22.67 million in long liquidations and $7 million in shorts, while SOL longs were liquidated at $4.1 million .

The sell-off accelerated existing profit-taking trends. CoinDesk reported that Bitcoin had previously surged to a record $126,200 before retreating, while ETH reversed all 7-day gains in 24 hours Coindesk^[1]. On-chain data revealed that Bitcoin's 90-day realized price had risen to $121,242, but recent volatility pushed the price below critical support levels. Analysts at CryptoQuant noted a "sharp easing in seller pressure" in derivatives markets compared to previous months Coindesk^[1].

Market participants are now monitoring the $115,000–$118,000 range for Bitcoin as a potential support zone. FxPro's Alex Kuptsikevich warned that a breakdown below $107,000–$115,000 could signal deeper bearish momentum ahead of the Fed's October 29 rate decision Coindesk^[1]. Meanwhile, altcoins face renewed pressure, with DOGE falling 4.42% to $0.1965 and SOL trading near $160 amid heavy derivatives outflows .

The geopolitical uncertainty has amplified crypto's correlation with traditional markets. As institutional investors rotated into gold and U.S. Treasuries, Bitcoin's role as a "digital hedge" was called into question. However, spot ETF inflows continued to grow, with $2.2 billion in net inflows reported for the week Coindesk^[1].