- Geopolitical tensions between the U.S. and China trigger major market disruptions.
- Over $19 billion in leveraged crypto positions liquidated.
- Bitcoin plunges 14%, setting new liquidation records.
The October 2025 Crypto Crash was triggered by geopolitical tensions, with China imposing rare-earth export restrictions and the U.S. responding with 100% tariffs on Chinese imports.
This event led to massive liquidations, affecting major cryptocurrencies like Bitcoin and Ethereum, and highlighted the volatility of markets influenced by global policy decisions.
U.S.-China Tensions Trigger $19 Billion Crypto Liquidations
Escalating geopolitical tensions involving the U.S. and China led to significant market disruptions. President Xi Jinping’s firm stance on rare-earth restrictions has shaken global supply chains for semiconductors and batteries, contributing to the financial cascade.
Financial disturbances are immediate across the crypto realm. Leveraged crypto positions worth $19 billion witnessed liquidation, marking the largest event of its type. Bitcoin saw a 14-15% drop, briefly reaching lows of $104,000. Ethereum joined the downfall, declining by 12%.
The crypto community responds with heightened caution. CME Group reports record futures and options volume activity, highlighting market anxieties. Despite the turmoil, public remarks directly quoting crypto leaders remain scant, limiting immediate guidance.
“The U.S. President announced via Truth Social that he would impose a 100% tariff on all Chinese goods, citing China’s restrictions as economic warfare.” – Donald Trump, President, United States
Bitcoin Price Nosedives 14%; Historical Context and Future Insights
Did you know? The October 2025 crash saw Bitcoin dropping over 14%, surpassing the impact of the notable May 2021 correction when Bitcoin fell by only 6% within a single day.
Bitcoin’s market data reflects the volatility characteristic of geopolitical events. As of October 17, 2025, CoinMarketCap records Bitcoin’s trading price at $106,547.91. With a market cap of $2.12 trillion and a 24-hour trading volume increase of 34.17%, recent fluctuations show a 12.17% decline over the past week.
Coincu analysts predict sustained financial turbulence as the market continues to digest recent events. Regulatory responses could include increased oversight to stabilize economies. Historical patterns suggest the need for strategic advisories to mitigate potential systemic risks in the crypto sector. Solana’s price prediction shows resilience trends as the market aims for a potential rally.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/october-2025-crypto-crash-analysis/