In one of the sharpest single-day drops this month, Bitcoin tumbled to $110,623 on Friday, October 10, 2025, extending a volatile week for the leading cryptocurrency. The sell-off accelerated after renewed trade war rhetoric from the White House and a resurgent U.S. dollar prompted a broad risk-off move across global markets.
Massive Liquidations Rock Exchanges
According to data from Coinglass, more than $2 billion in crypto derivatives positions were liquidated within 24 hours, with the majority being long positions on Bitcoin and Ethereum. The surge in liquidation activity was so intense that the Coinglass liquidations page went offline temporarily due to overwhelming traffic. The cascading liquidations added downward pressure, pushing Bitcoin to its lowest level since early August. By Friday afternoon, the entire cryptocurrency market capitalization had shed more than $250 billion.
Macroeconomic Headwinds
Analysts attribute the plunge to a combination of factors. U.S. President Trump's recent statements on China reignited trade war fears, causing risk assets from stocks to crypto to slide. Meanwhile, a strengthening U.S. dollar – bolstered by hawkish Fed expectations – drained liquidity from speculative markets. Institutional inflows, which had propelled Bitcoin above $120,000 just weeks ago, have paused as investors reassess the macroeconomic landscape. Ethereum fell by double digits, and other altcoins suffered even steeper losses, with several tokens down over 15% on the day.
Market Outlook
Bitcoin briefly stabilized around the $111,000 zone after the initial flush, but volatility remains elevated. Crypto derivatives open interest dropped sharply, suggesting that many traders have been forced to the sidelines. Some analysts warn that if macroeconomic conditions deteriorate further, Bitcoin could test the psychological $100,000 level. However, others note that the washout of leveraged positions often sets the stage for a relief rally. All eyes are now on next week's Federal Reserve speeches and any developments in U.S.-China trade negotiations for further direction.