Ethereum News Today: Crypto Markets Plummet as Exchanges Accused of Coordinated Dumping Amid Trade Wars

Bitcoin experienced a sharp 10% decline, dropping from $122,000 to $107,000 on October 10, 2025, amid escalating U.S.-China trade tensions and allegations of coordinated dumping by major exchanges. The crash erased over $250 billion from the cryptocurrency market cap, with hourly liquidations reaching $250 million. Binance, the largest crypto exchange, moved 4,000 ETH ($17 million) to platforms like OKX and Kraken within 10 minutes, sparking accusations of deliberate price suppression. On-chain data from Arkham and DeFiTracer highlighted rapid outflows of Ethereum and Bitcoin, with Binance also transferring $20 million in BTC, ETH, and SOL to Wintermute, a market maker, raising manipulation concerns .

Ethereum (ETH) was particularly hard-hit, plunging 15% to $3,860 on Binance as exchanges liquidated large long positions. Analysts noted that the speed and scale of these transactions fueled speculation of coordinated dumping to capitalize on panic-driven volatility. The U.S. government's 100% tariff threat against China created a "risk-off" environment, prompting exchanges to offload assets to manage exposure. While no regulatory proof of manipulation has been confirmed, critics argue that the lack of transparency undermines market trust .

The crash occurred against a backdrop of heightened geopolitical uncertainty, with Trump's trade policies exacerbating fears of a prolonged bearish trend. Binance's movements of stablecoins-$2.1 billion in inflows on September 17-further intensified scrutiny, with some alleging the exchange was stockpiling liquidity for strategic price interventions. Ethereum's on-chain activity also revealed large transfers from Matrixport to Binance and OKX, valued at $452 million in ETH and $272 million in BTC, signaling potential market manipulation .

The fallout extended beyond Bitcoin and Ethereum, with over $1 billion in leveraged positions liquidated across the crypto market. Ethereum accounted for $448 million in liquidations, while Bitcoin saw $278 million wiped out. Hyperliquid, a decentralized exchange, recorded the largest single liquidation of $29.1 million in ETH, underscoring the growing influence of decentralized platforms in driving volatility .

Regulatory and institutional observers are now closely monitoring the situation, with calls for increased oversight to prevent potential abuse of market power by exchanges. The incident highlights the fragility of crypto markets during geopolitical shocks and the need for greater transparency in exchange operations. As U.S.-China tensions remain unresolved, the crypto community braces for further volatility, with Bitcoin and Ethereum hovering near critical support levels.