The last two months have been a ride for crypto, but what happened on October 10th really shook things up.
After grinding higher through late August and September, Bitcoin hit a new all-time high above $125,000 on October 5–6, 2025. Four days later, markets were jolted when President Trump threatened 100% tariffs on Chinese imports starting on November 1, triggering a broad risk selloff.
Bitcoin briefly fell toward $105,000 before stabilising – while altcoins dropped much harder. Ether, Solana, and XRP saw double-digit intraday losses, with some tokens down 30-40% at the lows as billions in leveraged positions were liquidated.
Even so, BTC rebounded faster and held more of its earlier gains, supported by strong ETF inflows recorded in early October and continued net buying after the shock.
This article walks through the price action since mid-August, explains why Bitcoin held up better than the rest of crypto, and outlines what to watch as the tariff timeline unfolds.
Since Mid-August – A Quick Timeline
- Aug 14: Bitcoin set a then-record around $124.5k, finishing a strong summer run and establishing the reference point later exceeded in October.
- Late Aug → mid-Sept: Momentum cooled into a choppy range. With U.S. CPI/PPI prints and tariff headlines in focus, BTC repeatedly tested the $115k–$120k area without clear follow-through.
- Oct 1–2: A fresh push higher as the U.S. government shutdown began and traders leaned into “Uptober.” BTC reclaimed $117k-$119k alongside broad crypto strength.
- Oct 5–6: New all-time highs. Multiple venues printed $125k-$126k, with the move linked to a softer dollar and record ETF inflows into digital-asset funds.
- Oct 9: A pre-shock wobble ahead of Fed commentary; BTC slipped below short-term supports after a week of strong inflows.
- Oct 10 (tariff shock): The 100% tariff threat for November 1 sparked a cross-asset selloff. BTC wicked below $110k intraday as altcoins cratered.
- Oct 12–13: Stabilisation and rebound. As rhetoric softened and the dollar eased, BTC clawed back to roughly $115k, outpacing the broader crypto basket.
The Tariff Shock That Wrecked Altcoins – But Not Bitcoin
On Friday, Oct. 10, President Trump threatened 100% tariffs on all Chinese imports starting Nov. 1, turning a simmering trade spat into a full risk-off shock. Stocks had their worst day since April, and crypto sold off with them.
Liquidations and the altcoin wipeout. The headline triggered one of the biggest forced-selling waves on record: an estimated $16–19B in liquidations through the weekend as over-levered longs were flushed. Altcoins took the hardest hit – several large caps dropped 20%-40% at the lows. ETH briefly slid toward the mid-$3,500s, while SOL, XRP, and others posted steeper percentage losses than BTC.
Bitcoin’s drawdown was smaller – and its rebound faster. From an Oct. 5–6 all-time high near $125k, BTC dipped intraday below $110k on Oct. 10, then clawed back to roughly $115k by Oct. 13 as rhetoric softened and risk stabilised. Majors bounced, but BTC recovered ground sooner.
October Crypto Crash – BTC vs Altcoins: October Crypto Crash
| Asset | Approx % Drop (Oct. 10 shock) | Notes / Assumptions |
| Bitcoin (BTC) | 10% | From $125k ATH to intraday below $110k |
| Ethereum (ETH) | 15–16% | ETH was among the harder-hit major altcoins |
| Solana (SOL) | 20–30% | Some of the steepest drops among top names |
| XRP | 20–30% | Similar to SOL in severity |
| Other altcoins (average / ex-BTC & ex-ETH) | 30–40%+ at lows in some cases | The thinner book names saw extreme drops |
Why Bitcoin Held Up
The ETF bid cushioned the blow
In the week ended Oct. 4, crypto ETPs took in a record $5.95B, with $3.55B into Bitcoin – momentum that aligned with BTC’s Oct. 5-6 highs. Crucially, inflows continued after the Oct. 10 selloff: the following week logged $3.17B net (BTC: $2.67B) alongside record ETP volumes, signalling steady institutional demand that tends to buy dips.
Flight-to-quality inside crypto
Under stress, liquidity concentrates in the deepest spot books and the most mature derivatives venues – Bitcoin first, then Ether. Mid-2025 research showed a widening BTC-altcoin liquidity gap; options flow is similarly top-heavy (≈56% BTC, ≈40% ETH). With more depth, BTC’s price impact during forced selling is smaller – exactly what showed up on Oct. 10 as many alts fell 15%-30% while BTC’s drawdown was milder.
Macro tailwinds fit the “digital gold” story
Tariff risks revived safe-haven flows: gold broke above $4,000/oz to successive records from Oct. 8-13. BTC was already riding a softer-dollar backdrop; the overlap of policy uncertainty, debasement fears, and rising rate-cut odds helped Bitcoin stabilise faster than high-beta tokens once the initial shock passed.
Leverage purge mechanics favoured BTC
The headline set off one of 2025’s largest liquidation waves – estimates run from $7B (narrow measures) to $18-19B when including the extended weekend move. After the flush, perp funding and basis normalised first where liquidity is thickest (BTC), inviting quicker mean reversion than in thinner altcoin markets. Weekly fund flows stayed positive during and after the shock, reinforcing BTC’s bid.
Overall, Bitcoin behaved like crypto’s reserve asset (backed by ongoing ETF demand, deeper spot/derivatives liquidity, and a macro narrative that rhymed with bullion), so it fell less and bounced sooner than most altcoins when the tariff scare hit.
Anti-Altcoin Season
The Oct. 10 shock was a stress test – and most altcoins failed it.
Outside BTC/ETH/stablecoins, tokens fell roughly 33% in about 25 minutes at the depths as forced unwinds ripped through thin order books. Liquidations were enormous – $16-$19B over the episode – magnifying moves in names with less institutional depth.
Flows aren’t helping yet. Early October saw record ETP inflows, but the skew favoured Bitcoin. The following week still showed net inflows even as prices fell, with BTC leading by a wide margin while SOL/XRP cooled sharply. That supports BTC on dips but leaves most altcoins dependent on speculative money coming back.
Market structure is another drag. Liquidity, derivatives depth, and market-maker attention cluster in BTC (and to a degree ETH), so price impact is harsher elsewhere when volatility spikes. Bitcoin dominance remains elevated by historical standards – a simple sign that rotation still prefers the “reserve asset” over the long tail.
Without a clear catalyst (cleaner macro, a new product cycle, or strong chain-specific drivers), altcoins are likely to lag BTC on rebounds and lead on drawdowns. Watch dominance and ETP flow dashboards; if they stay BTC-heavy, the relative trend persists.
Tariffs Timeline and What to Watch
Near-term calendar
The tariff threat hit on Oct 10, with the White House signalling 100% duties on Chinese imports from Nov 1 unless talks change course. Finance chiefs meet at the IMF–World Bank Annual Meetings (Oct 13-18), then attention shifts to APEC Leaders’ Week in South Korea with a possible Trump–Xi meeting around Oct 31-Nov 1. Each date is a potential gap-risk window: headlines can land outside market hours and reprice crypto quickly.
Cross-asset tells
The dollar, gold, stocks, and rate-cut odds remain the best guides to BTC’s tone. Into this week, the dollar’s strength leaned risk-off, while gold pushed above $4,000/oz on trade-tension and easier-policy bets. Equity breadth wobbled on the tariff shock, then steadied; any renewed slide typically hits altcoins hardest. Keep an eye on weekly ETF flows too – early October showed heavy net inflows skewed to Bitcoin, which can cushion drawdowns if headlines turn choppy again.
Bitcoin the Reserve Asset
Bitcoin made new highs in early October, took a hit on the tariff shock, then stabilised while altcoins dumped. A great takeaway from this article is that it’s acting like crypto’s reserve asset: deeper liquidity, steadier ETF-driven demand, and a flight-to-quality bid when macro turns noisy. That mix softened the selloff and sped up the rebound.
From here, the tape hinges on three things: tariff headlines into Nov 1, weekly ETF flows, and the cross-asset mood (dollar, stocks, gold). BTC is consolidating near records with real buyers underneath, while altcoins remain the high-beta shock absorber.
FAQ: The October Bitcoin Crash Explained
1. What caused Bitcoin’s drop on October 10, 2025?
Bitcoin fell after President Trump announced plans for 100% tariffs on Chinese imports starting on November 1. The news triggered a global risk-off move, sending stocks and crypto sharply lower.
2. How much did Bitcoin fall during the October 10 selloff?
BTC dropped about 10% from its all-time high near $125,000, briefly touching $110,000 before rebounding to around $115,000 within days.
3. Why did altcoins crash harder than Bitcoin?
Altcoins like Ethereum, Solana, and XRP suffered steeper losses (between 20% and 40%) because they have thinner liquidity, less institutional demand, and higher leverage exposure compared to Bitcoin.
4. How much was liquidated in the October 2025 crypto crash?
Estimates suggest between $16 billion and $19 billion in leveraged positions were liquidated over the weekend following the tariff announcement, making it one of the largest forced-selling events of 2025.
5. Why did Bitcoin recover faster than other cryptocurrencies?
Strong ETF inflows, deep spot and derivatives liquidity, and a “flight-to-quality” dynamic helped Bitcoin bounce back faster. It acted as a reserve asset while altcoins lagged.
6. What should traders watch next?
Keep an eye on the tariff timeline into November 1, weekly Bitcoin ETF inflows, and cross-asset indicators like the dollar, gold, and equity markets. These remain key drivers of BTC’s near-term direction.
