Trump's tariffs ignite a bloodbath for Bitcoin! Big dump of 102,000 liquidating 8 billion, executives warn.

After Trump's announcement of a 100% tariff on Chinese imports, Bitcoin briefly flashed crashed to $102,000 on October 10, triggering $8.02 billion in long positions liquidations across the entire crypto market. Swan Bitcoin CEO Cory Klippsten warned that "Bitcoin may be subject to some drag," and holders should expect severe fluctuations in the short term.

Trump's tariffs become the trigger for Bitcoin flash crash

(Source: CoinMarketCap)

After U.S. President Trump announced a 100% tariff on imports from China, the price of Bitcoin briefly fell to $102,000 on October 10, triggering severe fluctuations in the crypto market. Cory Klippsten, CEO of Swan Bitcoin, told Cointelegraph that this flash crash is a "typical macro whip," but the price fluctuations of Bitcoin may not be over.

· Executives Warn: Risk Aversion Sentiment Will Continue to Weigh on BTC

Klippsten clearly stated on Friday: "If the overall risk-averse sentiment continues, Bitcoin may be somewhat negatively impacted before it can find support and begin to decouple again." This judgment reveals the core influence mechanism of Trump's tariff policy on Bitcoin's short-term trend.

Hedging sentiment transmission path:

Trump Tariff Announcement → Expectations for Escalation of Global Trade War

Stock market decline → Risk assets sold off broadly

Traders avoid risks → Bitcoin is the first to bear the brunt as a high Fluctuation asset.

Chain settlement → Price spiral decline

Klippsten stated that Bitcoin holders should anticipate some fluctuations in the coming days. "Macro-driven declines like this typically wipe out leveraged traders and weak investors, and then reallocate positions to prepare for the next round of increases."

This interpretation characterizes short-term fluctuations as healthy adjustments rather than trend reversals, provided that risk-off sentiment does not worsen further.

· 8 billion dollars liquidation reveals the level of market panic

In the past 24 hours, long positions worth approximately $2.19 billion in Bitcoin have been liquidated. According to CoinGlass data, the total amount of long liquidations in the entire crypto market reached an astonishing $8.02 billion, setting a new record for single-day liquidations in recent times.

Trump's tariff impact caught everyone off guard

Cointelegraph market director Ray Salmond stated that Trump's tariff announcement "sent shockwaves through the entire crypto market," catching leveraged traders "completely off guard."

Clearing Data Deep Analysis:

BTC long positions liquidated: 2.19 billion USD

Total market long positions liquidated: 8.02 billion USD

Clearing speed: completed within a few hours.

Impact Scope: Mainstream coins to altcoins are comprehensively bloodbathed.

"There is currently some panic in the market, typical macroeconomic fluctuations. Trump and China are exchanging tariff threats, the stock market is falling, and traders are scrambling to avoid risk," Klippsten added.

This level of panic is reflected in the price discrepancies across different exchanges.

· The severity of large CEX arbitrage exposure and chain liquidation

Salmond explained that the price discrepancy of Bitcoin between major CEX perpetual futures truly illustrates the severity of chain liquidations and how stop losses are utterly destroyed. Compared to the top two exchanges globally, the price difference reaches as high as $5,000 (approximately 4.7%).

This kind of abnormal price difference usually does not last more than a few minutes, but during extreme fluctuations, arbitrage opportunities are offset by liquidity exhaustion and trading delays. Binance perpetual futures have dropped deeper, indicating that leveraged traders on the platform are experiencing more severe liquidations.

As of the time of writing, the trading price of Bitcoin has slightly rebounded to $113,270, indicating that the market is beginning to digest the impact of Trump's tariffs and is undergoing a technical rebound.

The liquidation heatmap shows that the liquidity below has been exhausted

(Source: Hyblock)

Salmond cited the liquidation heat map data from Hyblock, stating, "In fact, all the downward long positions liquidity has been absorbed, and the remaining funds in the liquidation cluster are between $102,000 and $97,000."

· Technical Support Level Analysis

Current price structure:

Current price: $113,270 (bouncing back)

Cleared interval: 102,000-107,000 USD (liquidity has been exhausted)

Cluster range below: $97,000-102,000 (target if it drops again)

Key defense line: $110,000 (if held, confirms rebound)

The liquidation heatmap shows that long positions above $102,000 have essentially been cleared, indicating reduced selling pressure below in the short term. However, if Trump tariff sentiment continues to deteriorate, the next liquidation cluster in the $97,000-102,000 range could trigger a new round of sell-offs.

· Trump's tariffs are not the first to impact Bitcoin

This is not the first time Bitcoin has significantly dropped after Trump announced tariffs. Historical data shows a clear negative correlation between Trump's tariff policies and Bitcoin prices.

Review of Historical Trump Tariff Events

February 1, 2025 event: Trump signs an executive order imposing import tariffs on goods from China, Canada, and Mexico, Bitcoin price falls below 100,000 dollars.

Event in April 2025: The tariff measures announced by Trump for the first time brought shock to the crypto market and triggered concerns about an economic recession.

Event on October 10, 2025 (this time): Trump announced 100% tariffs on China, Bitcoin flash crash to $102,000, liquidating $8 billion.

This model shows that the market has viewed Trump's tariffs as a systemic risk signal, triggering reflexive sell-offs with each announcement. However, historical data also indicates that such macro-driven declines are typically short-term adjustments, followed by a V-shaped recovery.

Analysts remain optimistic: a buying opportunity on dips?

Despite the market bloodbath triggered by Trump's tariffs, some Bitcoin analysts still suggest that the recent price drop may present a buying opportunity.

· Bitwise executives: Macro drag is the best buying point

Bitwise Invest senior investment strategist Juan Leon stated in a post on X: "The best time to buy BTC is often when it is dragged down by the broader market."

This viewpoint is based on the relationship between Bitcoin and traditional financial markets: when Bitcoin drops due to macro factors (such as Trump tariffs) rather than internal issues in the crypto market, it usually indicates that the valuation has been mispriced, providing a low-risk buying opportunity.

· Psychological Barriers to Buying the Dip

Bitwise Invest Chief Investment Officer Matt Hougan reminds his 85,900 X followers to pay attention to the typical patterns of market participants, noting that while many express intent to buy Bitcoin during price pullbacks, they often hesitate when such situations arise because "the market doesn't feel good at that time."

"The feeling of buying on dips is always unpleasant. When market sentiment is low, declines occur. Keeping track of prices may be a good way to practice self-discipline," said Hougan.

Investment Psychology Insights:

Theory vs Practice: Most people plan to buy on dips, but fear prevents them from executing.

Emotional Trap: The best buying point is often when emotions are the most pessimistic.

Self-discipline mechanism: The preset price buying plan can overcome psychological barriers.

· Technical bullish signals

The relevant analysis shows that the Bitcoin Mayer multiple indicator suggests that the BTC price could reach $180,000 before becoming "overbought." This technical indicator compares the current price to the 200-day moving average, and the current value indicates that Bitcoin is still in a healthy upward trend, with the pullback triggered by Trump tariffs falling within the normal fluctuation range.

Investment Strategy Recommendations Under Trump's Tariffs

Facing the ongoing uncertainty brought by Trump tariffs, investors need to formulate coping strategies.

· Short-term Strategy (1-2 weeks)

Conservative investors:

Waiting for $110,000 support confirmation

Observe the subsequent developments of Trump tariffs

Build positions in batches rather than all at once.

Radical investors:

Buy on dips in the range of $110,000-$113,000

Set the stop loss below $107,000

Target 120,000-125,000 USD

· Mid-term Strategy (1-3 months)

Basic judgment: Trump's tariff impact belongs to short-term macro noise, which does not change the long-term bull market logic of Bitcoin. Klippsten's statement that it is "temporarily affected" is a transient phenomenon; once the risk-hedging sentiment eases, Bitcoin will decouple and rise again.

Risk Management:

Reduce leverage multiples to avoid liquidation risks.

Diversify exchange risk

Reserve 20-30% cash to cope with further pullbacks.

The warning from Swan Bitcoin's CEO reminds investors that short-term fluctuations are inevitable, but this is precisely the process of "eliminating leveraged traders and weak investors," creating conditions for the next round of growth.