Crypto Meltdown Deepens: Bitcoin And Ethereum Bleed As Traders Flee To Safety

Geopolitical shock triggers crypto sell-off

The global cryptocurrency market is facing its sharpest correction of 2025, with major tokens like Bitcoin and Ethereum plunging for a second consecutive day. The downturn was sparked by U.S. President Donald Trump’s announcement of an additional 100% tariff on Chinese imports, escalating fears of a trade war and triggering panic across financial markets.

Bitcoin fell below $26,000, while Ethereum dropped under $1,500, extending a seven-day decline of over 11.5%. The total market capitalization has shrunk to $3.7 trillion from last week’s $4 trillion peak.

Massive liquidations shake investor confidence

According to Bloomberg and Coinglass data, the crypto market witnessed its largest liquidation event in history, with over $19 billion in leveraged positions wiped out on October 11 alone. Within the first hour of trading, $7 billion worth of long positions were erased, affecting more than 1.6 million traders globally.

The sell-off was exacerbated by glitches in centralized price oracles, which triggered forced liquidations on major exchanges like Binance and Coinbase.

Key highlights:
- Bitcoin and Ethereum plunge amid tariff-induced panic  
- $19 billion in crypto positions liquidated in one day  
- Market cap drops to $3.7 trillion from $4 trillion  
- Traders shift to safe havens like gold and government bonds  
- Centralized price feeds blamed for triggering mass sell-offs  

Flight to safety and outlook ahead

With volatility surging, investors are reallocating funds to traditional safe havens. Gold prices have climbed 2.3% this week, while U.S. Treasury yields have dipped as demand rises. Analysts warn that unless geopolitical tensions ease, crypto markets may remain under pressure.

Despite the chaos, blockchain infrastructure has held firm, with DeFi platforms continuing to operate smoothly. Experts suggest that long-term investors should monitor macroeconomic signals and avoid leveraged positions during this period of uncertainty.

Sources: MSN, Bloomber, Coinpedia, Coindesk