Key Points
- •U.S.–China tariff threats trigger crypto market volatility.
- •Bitcoin and Ethereum face significant price drops.
- •Over $600M crypto liquidations during the market downturn.
Bitcoin and Ethereum faced sharp declines after former U.S. President Donald Trump's renewed tariff threats against China caused risk aversion on October 10, 2025.
The drop highlights heightened market sensitivity and underscores ongoing macroeconomic vulnerabilities, affecting crypto prices and triggering significant liquidations across major derivatives platforms.
Bitcoin and Ethereum experienced a notable downturn due to renewed tariff threats from the U.S. against China. This event led to increased market activity and significant volatility, as discussed by Crypto Analyst. High-profile market actions contributed to sharp price drops.
Former U.S. President Donald Trump announced increased levies on Chinese imports, intensifying market concern. Crypto analysts and traders responded to these developments with caution, identifying technical zones for potential trade setups in highly volatile conditions. According to Bitfinex analysts:
“While minor corrections remain possible, the broader context continues to favour a bullish fourth quarter. The setup remains favourable: a dovish [US] Federal Reserve, easing inflation, renewed ETF inflows, and stable on-chain support suggest the corrective phase is likely behind us.”
The tariff announcement resulted in heightened volatility across markets, sharply affecting cryptocurrency values. More than $600 million in leveraged positions were liquidated, with Ethereum contributing $235 million. This reflects increased risk aversion amplified by macroeconomic uncertainties.
Bitcoin fell from $126,000 to near $110,000, greatly affecting traders. On-chain data and exchange flows, as seen on TradingView, showed notable capital outflows from staking pools, underlining a shift to risk-off postures amid Treasury yield fluctuations and monetary policy concerns.
Bitcoin and Ethereum were notably affected, in parallel with broad-market declines. Reduced On-chain TVL and staking demonstrated declining investor confidence, contributing to the broader sell-off. Altcoins correlated similarly with this risk-off environment.
Expert analysis suggests potential recovery in Q4, historically a positive period for Bitcoin and Ethereum. Factors include a dovish Fed stance and easing inflation. Historical trends show pattern similarities with past macro-driven sell-offs and rapid rebound possibilities.