Key Highlights
- On Friday, Bitcoin took a sharp fall after crashing below $115,000 with a 5.3% drop due to massive liquidation
- A sharp and sudden wave of forced trader liquidations in the cryptocurrency market has also overwhelmed Coinglass
- This sharp fall comes after U.S. President Donald Trump warned China of heavy tariffs
On October 10, Bitcoin (BTC) plunged below $107,00 after dipping 10%, sparking a panic in the community. At the time of writing, BTC is trading at around $116,160, according to CoinMarketCap. This crash also triggered a correlation with the other altcoins, like Ethereum. ETH has also fallen by 7% on Friday.
Coinglass Crash Intensifies Selling Pressure
A sharp and sudden wave of forced trader liquidations in the cryptocurrency market temporarily overwhelmed the popular data website Coinglass. This has caused it to crash and highlight the intense frequency of these financial setbacks.
The price of Bitcoin fell by approximately 4% in a single day, which led to more than $800 million in long positions being automatically closed by exchanges. Of this massive total, $133 million came from bets on Bitcoin itself.
This difficult situation was not confined to just Bitcoin. Other major cryptocurrencies, including Ethereum and Solana, experienced severe liquidations, with $259 million and $66 million, respectively.
Market information reveals that an overwhelming 81% of these liquidations were long positions, which shows that a previous period of excessive optimism has encouraged traders to borrow heavily, creating a cascade of automatic selling when prices began to fall.
The temporary crash of the Coinglass platform, while brief, served to increase panic among investors. Traders found themselves unable to monitor their exposure and the overall market in real-time, which likely intensified the wave of selling pressure.
Looking at past events, these kinds of widespread liquidation events often make short-term price declines more severe, but they also have the effect of clearing out unstable and over-leveraged positions, which can set the stage for a potential market recovery.
Bitcoin Dips after Trump Warns China with Heavy Tariffs
From a broader economic perspective, this market volatility is partly connected to recent warnings about a trade war from the Trump administration. It sparked fear about export controls between the United States and China.
“It is impossible to believe that China would have taken such an action, but they have, and the rest is History. Thank you for your attention to this matter!” – President Donald J. Trump pic.twitter.com/Kx6deI2voC
— The White House (@WhiteHouse) October 10, 2025
These factors have revived a sense of risk aversion among investors, prompting them to shift their investments away from volatile assets, such as cryptocurrency.
Cryptocurrency exchanges like Binance led with $229 million in liquidations, which also highlights the dominant role centralized trading venues play in facilitating borrowed trading.
For investors, events like this serve as a critical reminder to improve their personal risk management strategies. Such strategies can include using less borrowed money for traders and consistently setting automatic stop-loss orders to survive better sudden market downturns and a rapid evaporation of liquidity.
Currently, experts are watching a very important price level for Bitcoin between $118,000 and $120,000. This area is seen as strong support, meaning many buyers have orders ready to purchase Bitcoin there. The price might drop to this zone, but if these buyers step in, it is expected to bounce back and start rising again.
Recent price action has already tested this idea. This is a classic and positive sign in trading, confirming that this level is now strong support.
A day before this crash, a major trading platform in the U.K., Hargreaves Lansdowne, issued a warning against Bitcoin investments.
“The HL Investment view is that bitcoin is not an asset class, and we do not think cryptocurrency has characteristics that mean it should be included in portfolios for growth or income and shouldn’t be relied upon to help clients meet their financial goals,” Hargreaves Lansdowne said in a statement.
“Performance assumptions are not possible to analyse for crypto, and unlike other alternative asset classes, it has no intrinsic value.”
