Bitcoin suffered a dramatic crash on Friday, October 10, 2025, plunging to $110,623 in its steepest single-day decline since early August. The selloff was fueled by renewed trade war anxieties, a strengthening U.S. dollar, and a broad risk-off sentiment that triggered over $2 billion in leveraged position liquidations across major crypto exchanges.
Market Mayhem: Bitcoin Breaks Below Key Support
The leading cryptocurrency tumbled more than 8% from its recent highs near $120,000, briefly touching the lowest level since August. According to data from Coinglass, total liquidations in crypto derivatives exceeded $2.1 billion within 24 hours, with long positions accounting for the vast majority. The surge in liquidations was so intense that the Coinglass liquidation tracker page crashed due to overwhelming traffic. Ethereum and other top altcoins also suffered double-digit percentage losses, while the combined cryptocurrency market cap shed more than $250 billion in a single afternoon.
Trade War Fears and a Hawkish Dollar
The catalyst for the crash was a fresh round of trade war rhetoric from former President Donald Trump, who made aggressive statements regarding China during a campaign event. This reignited concerns over global trade disruptions and sent the U.S. dollar index climbing. A stronger dollar traditionally weighs on risk assets like cryptocurrencies, as it reduces the appeal of speculative investments. Institutional inflows, which had been robust in recent weeks, ground to a halt, with several spot Bitcoin ETFs reporting net outflows on Thursday and Friday.
Liquidation Cascade and Technical Breakdown
The drop below the critical $115,000 support level triggered a cascade of stop-loss orders and automated liquidations. Many traders had piled into highly leveraged long positions after Bitcoin’s rally above $120,000 earlier in the month, leaving them vulnerable to a sudden reversal. As the price fell, margin calls forced more selling, creating a vicious cycle. The open interest in Bitcoin futures on platforms like Binance and Deribit declined sharply, indicating that leveraged players were being flushed out.
Outlook: Volatility to Persist, Possible Retest of $100,000
Bitcoin managed to stabilize around the $111,000 zone by Friday evening, but market sentiment remained fragile. Analysts warn that if trade tensions escalate further or the Federal Reserve maintains its hawkish stance on interest rates, Bitcoin could revisit the $100,000 psychological level. However, some see the mass liquidation event as a potential bottoming signal, as historical patterns show that such extreme deleveraging often precedes a relief rally. Traders are now closely watching next week’s U.S. inflation data and any new macroeconomic headlines. The crypto market remains on edge, and caution is advised for those using leverage.