Bitcoin suffered a steep decline on Friday, October 10, 2025, falling to $110,623 — its lowest level since early August — as renewed trade war anxieties and a surging US dollar triggered a wave of forced selling across the crypto derivatives market. According to data from Coinglass, more than $2 billion in leveraged positions were liquidated within 24 hours, with long positions accounting for the vast majority.
Macroeconomic Jitters Drive Sell-Off
The sell-off was sparked by President Trump's latest comments regarding trade policies with China, reigniting fears of a full-blown trade war. Investors fled risk assets, pushing the US Dollar Index (DXY) up 0.8% on the day. This macro headwind hit cryptocurrencies particularly hard, as they are often treated as risk-on assets. Institutional inflows, which had been strong during Bitcoin's rally above $120,000, also appeared to pause, adding to the downward pressure.
By 5:00 PM EST, the Coinglass liquidation page was overwhelmed by traffic and temporarily became inaccessible, underscoring the level of panic. Major altcoins such as Ethereum also suffered double-digit losses. The total crypto market capitalization shrank by more than $250 billion within the same period, as per data aggregator CoinMarketCap.
Leverage Amplifies the Crash
Analysts point to the accumulation of excessive leverage during Bitcoin's previous uptrend as a key amplifier of the crash. The cascading liquidations created a feedback loop, driving prices lower and triggering further forced closures. Open interest in Bitcoin futures dropped sharply as positions were closed.
Despite a brief stabilization near $111,000, the technical outlook remains fragile. The level of $110,000 is now a critical support; a break below could open the door to a retest of the $100,000 psychological level, especially if trade tensions escalate further.
At press time, Bitcoin was trading at $111,200, down 9.5% over the past 24 hours. Ethereum was at $2,800, down 11%. The global crypto market cap stood at $3.2 trillion, a 7.2% drop from the previous day. Market participants are closely watching the next moves from the Federal Reserve and any new trade policy announcements.