The cryptocurrency market experienced one of its steepest single-day declines of 2025 on October 10, with Bitcoin plunging below $110,000 and Ethereum tumbling over 15% after President Donald Trump threatened to impose 100% tariffs on Chinese imports. The announcement sent shockwaves through financial markets, triggering nearly $900 million in liquidations across crypto assets.
Bitcoin Crypto Market Crash at a Glance
| Asset | 24-Hour Drop | Price Level | Liquidations |
|---|---|---|---|
| Bitcoin (BTC) | -10% | Below $108,000 | $250M+ per hour |
| Ethereum (ETH) | -15% | ~$3,800 | Major losses |
| XRP | -20% to -33% | Significant decline | Heavy liquidations |
| Solana (SOL) | -15% to -30% | Sharp drop | Major impact |
| Total Market | Massive selloff | Widespread decline | $900M+ total |
| Traders Liquidated | 210,000+ | Largest order: $15.49M | 24 hours |
Trump’s Tariff Threat Shakes Markets
The dramatic market decline marks one of the steepest single-day drops in the crypto market in 2025, triggered by President Trump’s announcement of potential 100% tariffs on Chinese goods. The threat came in response to China’s export controls on rare earth metals, escalating the ongoing trade war between the world’s two largest economies.
Bitcoin price dropped below $108,000 as escalating U.S.-China trade tensions and tariff talks sent shockwaves through the market. What began as a tense geopolitical standoff quickly evolved into a full-blown crypto market rout.
The Liquidation Cascade
The speed and severity of the crash triggered massive liquidations across cryptocurrency exchanges. Liquidations reached $250 million per hour at the peak of the selloff, with over 210,000 traders liquidated in 24 hours, including a single Bitcoin-USDT order worth $15.49 million on Hyperliquid.
Major cryptocurrencies bore the brunt of the panic selling. ETH, BTC, SOL, WLFI, XRP, BNB, HYPE, DOGE, XPL, WLFI, and ENA recorded the largest liquidations, totaling over $900 million.
Why Tariffs Impact Crypto
While cryptocurrency markets often position themselves as separate from traditional finance, major geopolitical events prove this narrative misleading. Trade wars affect crypto through multiple channels:
Risk-Off Sentiment: When uncertainty rises, investors flee volatile assets like cryptocurrencies for safer havens such as bonds and gold.
Economic Slowdown Fears: Tariffs threaten global economic growth, reducing risk appetite across all markets, including crypto.
Dollar Strength: Trade tensions often strengthen the U.S. dollar, creating inverse pressure on dollar-denominated Bitcoin.
Liquidity Concerns: Major institutional investors reduce exposure to speculative assets during geopolitical uncertainty.
For crypto investors navigating these turbulent markets, understanding the broader financial landscape is crucial. Explore comprehensive coverage of cryptocurrency market trends and global tech developments at TechnoSports.
Pattern of Trump Tariff Volatility
This isn’t the first time Trump’s tariff policies have impacted markets. Back in April, his “Liberation Day” tariffs on 185 countries prompted Bitcoin to drop 1.1% in an hour while the S&P 500 lost more than $2 trillion in market capitalization in just 15 minutes.
The pattern reveals crypto’s increasing correlation with traditional markets during crisis moments, contradicting the “digital gold” narrative some proponents champion.
Whale Activity Signals Trouble
Prior to the decline, a key Bitcoin OG wallet opened $1.1 billion in short positions on BTC and ETH, resulting in unrealized profits of over $27 million. This sophisticated trading activity suggests some major players anticipated the downturn, potentially based on advance political intelligence.
Market Recovery Outlook
Despite the carnage, 45% of predictors on Myriad Markets remain bullish that Bitcoin will pump to $140,000 before dropping to $110,000. This optimism reflects crypto’s historical resilience following geopolitical shocks.
According to CoinDesk, recovery depends largely on whether tariff threats materialize into actual policy or serve as negotiating tactics. Historical precedent suggests Trump’s tariff announcements often precede negotiations rather than implementation.
What Investors Should Do Now
Avoid Panic Selling: Emotional decisions during crashes often lock in losses. Historical crypto crashes have recovered, though timing remains unpredictable.
Review Risk Tolerance: If this volatility causes distress, your crypto allocation may be too high for your risk profile.
Watch Trade War Developments: Monitor U.S.-China negotiations closely, as resolution could trigger rapid recovery.
Consider Dollar-Cost Averaging: For long-term believers, crashes present accumulation opportunities at reduced prices.
Check Exchange Liquidity: Ensure your crypto exchange maintains adequate reserves and hasn’t been affected by the liquidation cascade.
The cryptocurrency market’s volatility remains its defining characteristic. While blockchain technology’s long-term potential attracts believers, short-term price action often reflects broader market sentiment and geopolitical risk—as October 10’s crash dramatically demonstrated.
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FAQs
Q: Why did Trump’s tariff announcement cause Bitcoin and cryptocurrency prices to crash?
A: Trump’s threat to impose 100% tariffs on Chinese imports triggered risk-off sentiment across all financial markets, not just crypto. Investors fear that escalating trade wars will slow global economic growth, prompting them to sell volatile assets like cryptocurrencies. Additionally, tariff tensions often strengthen the U.S. dollar, which creates downward pressure on Bitcoin and other dollar-denominated crypto assets. The crash also triggered automated liquidations of leveraged positions, accelerating the decline.
Q: Is this crypto crash a buying opportunity or will prices fall further?
A: Whether this represents a buying opportunity depends on your investment timeline and risk tolerance. Historically, Bitcoin has recovered from geopolitical shock-driven crashes, but timing remains unpredictable. Key factors to watch include whether Trump actually implements the threatened tariffs or uses them as negotiation tactics (as he has historically), how China responds, and whether broader equity markets stabilize. Long-term crypto investors often use dollar-cost averaging during volatility rather than trying to time the absolute bottom. Never invest more than you can afford to lose in volatile assets like cryptocurrency.
