On October 10, 2025, Bitcoin's price plummeted following a geopolitical incident triggered by President Trump's announcement of a 100% tariff on Chinese imports, causing widespread market turmoil.
The crash significantly impacted the crypto ecosystem, erasing over $1 trillion in market value and prompting concerns over financial stability due to mass liquidations and institutional repercussions.
Bitcoin's potential rise to $150,000 follows the significant crash on October 10, 2025, caused by a U.S. tariff announcement impacting global markets.
The crash erased over $1 trillion in market cap, leading experts to predict Bitcoin's rebound as macro fears ease.
100% U.S. Tariff Sparks $1 Trillion Market Cap Loss
The October 2025 crash was triggered by the announcement of a 100% U.S. tariff on Chinese imports. Donald Trump stated, "Starting November 1," at a presidential podium. Arthur Hayes noted major exchanges auto-liquidated collateral, exacerbating the situation.
Over $19 billion was liquidated in perpetual futures across multiple exchanges. Estimates suggest total liquidations surpassed $30 billion, marking a high level of market instability with significant financial repercussions.
Bitcoin Price Drops $22,000 in Market Shake-Up
The crash saw Bitcoin drop from $125,000+ to $103,000 before stabilizing at $112,000. Gold surpassed $4,000/oz, indicating traditional safe-haven appeal amid market volatility.
The imposed tariffs ignited widespread changes, with institutional products affected and ETF and OTC desks encountering net-asset-value disruptions, raising liquidity concerns.
Comparing 2025 Crash with Previous Market Events
The 2025 crash parallels the 2020 "Covid crash" in panic but differs through structural supply-chain impacts on Bitcoin mining. Unlike the 2022 Terra/Luna events, it featured exogenous shocks.
Market strategists predict potential Bitcoin recovery to $150,000, contingent on macro-economic stabilization, geopolitical policy shifts, and increased digital asset allocations by institutions.
Arthur Hayes, Former CEO, BitMEX, Influencer, said, "Word on the street is that big CEX’s auto liquidation of collateral tied to cross margined positions is why lots of alts got smoked on the move down. Congrats to all you stink bidders. We won’t be seeing those levels any time soon on many high quality alts."