Bitcoin price plunged $16,700 on Friday, a 13.7% drop to $105,000, wiping out over $5 billion in leveraged positions as liquidity dried up ahead of a U.S. market holiday.
Crypto.com CEO Kris Marszalek urged regulators to probe exchanges hit hardest by $20 billion in liquidations, with Hyperliquid, Bybit, and Binance leading losses.
The crash deepened after President Donald Trump announced a 100% tariff on China, rattling global markets and sending Bitcoin briefly below $110,000.
Scroll down for the full recap and what it could mean for crypto’s next big move.
Top Crypto News Recap (October 5 – October 11, 2025)
- •Trump’s Tariffs on China Trigger Bitcoin Crash and Market Turmoil
- •US Bitcoin Reserve Could Begin Funding Soon, Says Senator Lummis
- •Morgan Stanley Opens the Door to Crypto for All Clients
- •Major Banks Unite to Explore G7-Backed Stablecoin Initiative
- •Democrats’ New Crypto Proposal Faces Backlash for Threatening DeFi Innovation
- •Europe Pushes for Euro Stablecoins to Counter Dollar Dominance
Trump’s Tariffs on China Trigger Bitcoin Crash and Market Turmoil
Bitcoin plunged to $102,000 on Binance after President Trump announced 100% tariffs on China, sparking panic across global markets. The move, linked to China’s planned export controls on rare‑earth minerals vital for chip production, caused over $9.4 billion in crypto liquidations and sent major coins like Ether and Solana sharply lower.
US Bitcoin Reserve Could Begin Funding Soon, Says Senator Lummis
Senator Cynthia Lummis confirmed that the US Strategic Bitcoin Reserve (SBR) could begin fundraising “anytime,” though legislative delays are slowing progress. She praised the initiative’s potential to strengthen national finances by leveraging government gold gains to invest in Bitcoin. The reserve, initially funded by seized BTC, aims to operate without taxpayer costs.
Morgan Stanley Opens the Door to Crypto for All Clients
Morgan Stanley will let all clients, including those with IRAs and 401(k)s, invest in crypto funds starting Oct. 15. Initially limited to Bitcoin funds from BlackRock and Fidelity, the move marks a major step in mainstream adoption. The bank aims to balance opportunity and caution as digital assets become integral to diversified portfolios.
Major Banks Unite to Explore G7-Backed Stablecoin Initiative
A coalition of major banks, including Bank of America, Goldman Sachs, Citi, Deutsche Bank, and BNP Paribas, is exploring the creation of a 1:1 reserve‑backed stablecoin tied to G7 currencies. The project aims to harness digital‑asset benefits, enhance market competition, and ensure regulatory compliance amid new U.S. stablecoin legislation.
Democrats’ New Crypto Proposal Faces Backlash for Threatening DeFi Innovation
Several Democratic senators have proposed new crypto regulations that could place risky DeFi protocols on a “restricted list” and enforce KYC rules on non‑custodial wallets. Critics warn the move could “kill DeFi,” drive innovation offshore, and undo bipartisan progress toward fair crypto regulation under the CLARITY and RFIA acts.
Europe Pushes for Euro Stablecoins to Counter Dollar Dominance
The EU is shifting its stance on stablecoins, urging the development of euro‑backed tokens to reduce reliance on US dollar stablecoins. Officials, including Pierre Gramegna and Paschal Donohoe, emphasized financial innovation amid America’s stablecoin boom, noting that the digital euro’s launch remains delayed until at least 2029.
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