Bitcoin Suffers Historic Overnight Crash Amid Tariff Shock and $19B Liquidation Wave

Bitcoin (BTC) experienced one of its most dramatic crashes in recent history last night, plunging sharply from around $114,000 to nearly $102,000 within hours before rebounding. The crash wiped out billions in leveraged positions and rattled confidence across the crypto market.

Tariff Tensions Trigger Market Panic

Analysts point to geopolitical tensions as the first domino.
Former U.S. President Donald Trump’s announcement of a 100% tariff on Chinese tech and software imports reignited fears of a full-scale U.S.–China trade war. The announcement immediately rippled through global risk markets, pushing investors out of speculative assets like cryptocurrencies.

“This tariff shock made traders move from high-risk assets to safety,” said a senior strategist from CryptoQuant. “Bitcoin was overleveraged and the market simply snapped.”

Massive $19 Billion Liquidation Event

Data from multiple exchanges show more than $19 billion worth of crypto positions were liquidated in just 24 hours — making it one of the largest liquidation events in crypto history.
Bitcoin longs alone accounted for several billion in forced liquidations as prices cascaded through major support levels.

Leveraged traders were hit hardest. Once Bitcoin broke below the $108,000 support zone, automatic margin calls triggered a wave of selling that accelerated the decline.

Technical Overstretch Meets Thin Liquidity

Before the crash, technical indicators showed Bitcoin entering an overbought phase after weeks of steady gains. The sudden sell-off was amplified by low overnight liquidity and thin order books on major exchanges, creating a feedback loop that pushed prices down even faster.

Analysts also reported temporary slowdowns and mismatched orders on some platforms during the height of the crash, compounding the volatility.

Whales and Institutions Under Scrutiny

Several crypto watchers suggested that large “whale” wallets may have sparked or profited from the downturn by shorting Bitcoin before the fall.
While unproven, the timing of large transfers and short build-ups has raised questions about possible coordinated moves behind the scenes.

A Rapid Rebound, But Caution Remains

Despite the steep drop, Bitcoin quickly bounced back above $110,000, showing that long-term sentiment remains resilient. However, the incident highlights just how fragile the crypto market can be when global macro shocks collide with overleveraged positions.

“Bitcoin’s fundamentals haven’t changed, but last night was a reminder that the market structure is still very reactive,” said a trader from Binance Futures.

Summary

• Event: Bitcoin flash crash, Oct 11–12, 2025

• Low price: ~$102,000

• Cause: U.S.–China tariff announcement + mass liquidations

• Liquidations: Over $19 billion (largest on record)

• Aftermath: Quick rebound to ~$110,000, sentiment remains cautious