Bitcoin's price fell below $110,000 in October 2025, sparking a record $524M in cryptocurrency liquidations across major tokens amid geopolitical tensions involving the US‑China relationship.
The cascade of liquidations highlights the vulnerability of highly leveraged positions, underscoring the need for market reform and more robust risk management practices.
In October 2025, Bitcoin dipped below $110,000. This initiated the largest liquidation cascade in crypto history, erasing leveraged positions. Such volatility was influenced by an external policy announcement from Donald Trump.
In response, Trump declared a 100 % tariff on Chinese imports, spurring market fears. Various assets saw sharp declines as traders reacted swiftly.
“Imposing a 100 % tariff on ALL Chinese imports—America will stay STRONG and SECURE. No more dependence on Chinese tech. This is NATIONAL SECURITY.” — Donald Trump, Former President of the United States
The market integrity faced questions over potential insider‑trading practices.
Bitcoin fell below $110,000 in October 2025, causing significant liquidations and impacting major cryptocurrencies.
This downfall resulted in $19 billion in liquidations, highlighting flaws in the current trading protocols and calling for increased transparency.
$19 Billion in Liquidations Hit Major Cryptos
The event led to a $19 billion liquidation impacting major assets. Ethereum and Solana experienced substantial depreciations, reflecting market stress. DeFi platforms also showed reduced liquidity, compounding the situation.
Market experts noted how on‑chain data revealed leverage excesses. This liquidation surpasses previous events with widespread concern over trading protocols. Key industry figures emphasize the need for transparency and revised risk paradigms.
Comparing Crisis Events: FTX 2022 vs. 2025 Liquidation
Historically, such a cascade compares to the 2022 FTX collapse and May 2021’s leveraging issues. Both displayed similar patterns of volatile market reactions and liquidation triggers.
A Kanalcoin analyst highlights potential regulatory responses given past crisis patterns. The situation underscores the volatile nature of digital assets, calling for more strategic management of market leverages.