Bitcoin suffered a dramatic sell-off on Friday, October 10, 2025, tumbling to $110,623 — its lowest level since early August — as a wave of leveraged liquidations swept across major exchanges. The sharp decline, one of the most severe single-day drops this month, was fueled by renewed trade war anxieties and a rallying U.S. dollar.
Trade War Fears and Dollar Strength Trigger Sell-Off
The market turmoil was ignited by fresh tariff threats from former President Donald Trump targeting China, reigniting fears of a global trade conflict. Investors rushed to safe-haven assets, pushing the U.S. dollar index to multi-week highs. Bitcoin, often considered a risk-on asset, bore the brunt of the flight from risk. Institutional inflows, which had propelled Bitcoin to all-time highs above $120,000 just days earlier, came to a sudden halt, amplifying the downward momentum.
Record Liquidations: Over $2 Billion Wiped Out in 24 Hours
According to data from Coinglass, the crypto derivatives market witnessed more than $2 billion in liquidations within 24 hours, predominantly long positions that had been placed in anticipation of continued upside. The massive wave of forced selling overwhelmed exchange systems — the Coinglass liquidation tracker itself crashed temporarily due to excessive traffic. Bitcoin briefly stabilized near the $111,000 zone after hitting the intraday low of $110,623.
Broader Market Fallout: Altcoins Follow Bitcoin Lower
The selling pressure was not limited to Bitcoin. Ether and other major cryptocurrencies suffered double-digit percentage losses, dragging the total crypto market capitalization down by more than $250 billion by Friday afternoon. Analysts cautioned that the uncertainty surrounding U.S.-China trade relations, combined with a stronger dollar and reduced risk appetite, could keep the market volatile in the near term.
As of 5:00 p.m. EST, Bitcoin was trading at approximately $111,000, but traders remained on edge. The liquidation cascade may not be over; many open interest positions still face liquidation if prices dip further. The coming days will be critical in determining whether $110,000 serves as a temporary floor or the start of a deeper correction.