Why Did Crypto Crash Today? Tariffs, Liquidations, and a Fast Rebound

Crypto prices fell sharply today, October 11, 2025. Bitcoin plunged intraday before stabilizing, while major altcoins also slid. The sell-off followed an abrupt U.S. tariff escalation on China and a wave of forced liquidations across crypto derivatives.

Risk assets dropped worldwide after the tariff news. U.S. stocks logged their worst day since April, and sentiment spilled into digital assets. By early Asia hours, Bitcoin had bounced off its lows but remained volatile.
* The price is 112523.0 USD currently with a change of -9302.00 USD (-0.08%) from the previous close.
* The intraday high is 122456.0 USD and the intraday low is 105262.0 USD.

Crypto Market in Freefall — A sharp red plunge reflects today’s sudden sell-off across Bitcoin, Ethereum, and major altcoins amid tariff shocks and massive liquidations.

What Triggered Today’s Crypto Sell-Off

First, policy shock. Late Friday U.S. time, President Donald Trump said the U.S. will impose an additional 100% tariff on Chinese imports and add new export controls on critical software. Markets quickly priced in a deeper trade confrontation.

Second, a broad risk-off move. Wall Street tumbled on the tariff headlines, and volatility spiked. When equities slide together, high-beta assets like crypto often move faster.

Third, leverage. As prices knifed lower, billions in crypto derivatives were forcibly closed. Bloomberg, citing Coinglass data, reported more than $7B in liquidations within a very short window, amplifying the drop. That “wipeout” dynamic is common during headline shocks.

Fourth, fragile positioning after recent highs. Earlier this week, Reuters noted Bitcoin near records with strong ETF inflows. Elevated positioning can leave the market vulnerable when a macro headline hits.

Where prices stand now. As of press time, Bitcoin trades near $112,523 after an intraday low around $105,262. Ethereum is near $3,843 after a low around $3,536. Conditions remain headline-driven and thin on the weekend.

What It Means for Traders and the Weekend

Short term, macro headlines rule the tape. Any fresh signals on U.S.–China trade could move crypto quickly. A low-liquidity weekend can magnify both drops and rebounds.

Medium term, watch positioning and ETF flows. The market just cleared excess leverage. If spot demand stays firm, prices can base. If macro risk worsens, another flush is possible. Keep an eye on key round numbers and prior highs as sentiment markers.

Bottom line: Why did crypto crash today? A trade-war shock, a cross-market sell-off, and billions in forced liquidations hit at once. Until policy noise cools, expect choppy action with fast swings.

FYI (keeping you in the loop)-

Q1: Why did crypto crash today?

Because of a sudden U.S. tariff escalation on China that triggered a broader risk-off move and mass liquidations. Prices fell fast, then partially rebounded.

Q2: Did the tariff news directly affect Bitcoin?

Yes. Bitcoin fell sharply soon after the tariff announcement and export-control signals. Macro policy shocks often hit crypto first because of high leverage.

Q3: How much was liquidated?

Billions of dollars in leveraged positions were wiped out in a short span, according to Bloomberg’s read of Coinglass data. Figures updated through the session remained elevated.

Q4: Where is Bitcoin price right now?

Roughly $112.5K at last check, after an intraday low near $105K. Ethereum hovered around $3.8K after a $3.5K low. Prices can change quickly.

Q5: What should traders watch next?

Further U.S.–China trade headlines, weekend liquidity, and whether spot demand or ETF flows absorb supply. Big levels and funding rates matter after a leverage flush.

References

Reuters. (2025). Bitcoin extends decline to $104,782 as Trump escalates US-China trade war. October 10, 2025.

Associated Press. (2025). Wall Street tumbles to its worst day since April after Trump threatens more tariffs on China. October 10, 2025.

Bloomberg. (2025). Crypto Sees More Than $6 Billion in Liquidations. October 10, 2025.

Reuters. (2025). Global crypto ETFs attract record $5.95 billion as bitcoin scales new highs. October 7, 2025.

Disclaimer: This report is for information only and is not investment advice. Cryptocurrency markets are highly volatile. Do your own research before making financial decisions.