Last night (October 10, 2025), the cryptocurrency market did experience a significant drop.

The recent decline was mainly triggered by U.S. President Trump threatening to significantly increase tariffs on China, leading to a collective setback for global risk assets.



Here is a summary of the key information regarding the recent market fluctuations:



Dimension


Specific situation




Main triggering factors


Trump threatened on social media to "significantly increase" tariffs on China, raising concerns in the market about escalating tensions in global trade.




Market performance


Bitcoin
(BTC): At one point, it plummeted over 13%, dropping below the $110,000 mark, with a low of $104,920.
Other cryptocurrencies: Ethereum (ETH), Ripple (XRP), and Dogecoin (DOGE), among other mainstream coins, also experienced double-digit declines, with the overall market capitalization evaporating by more than 250 billion dollars.




Chain reaction


Massive liquidations: Nearly 1.52 million people worldwide were liquidated within 24 hours, with a total liquidation amount exceeding $1 billion.
- Global market impact: All three major US stock indices plummeted, with the Nasdaq down more than 3%; European stock markets and international oil prices also fell sharply.
- Risk aversion is rising: funds are flowing into safe-haven assets such as gold and government bonds, driving up gold prices.




Other influencing factors


U.S. Government Shutdown: Entering Day 10 and starting large-scale permanent layoffs of federal employees, intensifying market tensions.
Technical pressure: Some analysts pointed out that Bitcoin has shown signs of weakness after failing to stabilize above the previous high, triggering a large number of leveraged position liquidations.





What should we pay attention to in the future market?

The recent decline is the result of multiple factors coming together. In addition to the direct impact of macro news, there are also some underlying weaknesses within the market.



Macroeconomic signals: The market is generally focused on the Federal Reserve FOMC meeting scheduled for October 28-29, and its policy direction may become the next important catalyst for the market.



Intrinsic factors in the market: Some analyses suggest that the cryptocurrency market has recently lacked new internal driving forces (such as disruptive technological narratives), causing investors to tend to wait and see in a high valuation environment.