The cryptocurrency market survived today a spectacular crash, caused by violent political and economic events that caused a huge sale of digital assets.
The scale of today's crash on cryptocurrency
On Friday, October 10, 2025, the global cryptocurrency market lost nearly $200 billion worth in hours. The capitalization of the entire market fell from about 4.25 trillion to $4.05 trillion. Bitcoin dived as much as 10%, from USD 122 000 to approximately USD 107,000. Ethereum and altcoins such as XRP, Solana, and Binance Coin (BNB) lost more than 15% of the value. Smaller cryptocurrency, including Dogecoin and Trump coin, passed down to 35-43%.
Table: Key Cryptocurrency drops on October 10, 2025
| Cryptovalut | Value before crash | Value at crash | Decrease % |
|---|---|---|---|
| Bitcoin | USD 122 000 | USD 107 000 | 12,3% |
| Ethereum | ~4 900 USD | ~4 150 USD | ~15,3% |
| Solana | ~USD 160 | ~130 USD | ~18,7% |
| XRP | ~$3.5 | ~2.9 USD | ~17,1% |
| Dogecoin | ~0.21 USD | ~USD 0.13 | ~38% |
| Trump coin | ~7 USD | ~USD 4 | ~43% |
Causes of rapid decline
Trade War and Political Tensions
The main factor causing today's crash was announcements by U.S. President Donald Trump regarding the imposition of 100% duties on Chinese imports from 1 November and tightening of export control. Such decisions heightened concerns about the biggest trade conflict since 2019. At the same time, Trump canceled the scheduled meeting with Chinese President Xi Jinping, which only increased uncertainty in the markets. These events sparked a wave of panic and a massive sale of unprofitable and risky assets, including cryptocurrency.
Exchange sale and liquidation of leveraged positions
Today's sale was also exacerbated by the liquidation of leveraged positions worth over $800 million, with the dominant Bitcoin positions. Traders with long positions suffered significant losses, reaching hundreds of millions of dollars. The rapid reaction of whales, or large investors, opened short positions worth nearly a billion dollars to Bitcoin and Ethereum, suggesting further declines.
Low liquidity and increasing variability
As a result of political turbulence and sales, liquidity in the cryptocurrency market declined, adding volatility and increased the range of price fluctuations. The cryptocurrency markets – increasingly correlated with traditional stock exchanges – followed the risk-off movement and investors fled to safer assets.
How do the largest and smaller cryptocurrency manage?
Bitcoin and Ethereum behave as the most liquid assets, although they lose value and test important levels of price support around US$107,000 for BTC and just over US$4,000 for ETH. Altcoins such as Solana and XRP also experience double-digit declines. Smaller cryptocurrency and thematic tokens – including Dogecoin and Trump coin – record the strongest declines, often exceeding 35% in a short time.
What is the market coming up?
The mood remains very uncertain. Analysts warn that the situation may continue to deteriorate, especially if commercial tensions escalate. Investors expect volatility for the coming days, and the weekend can bring further moves up or down, depending on the actions of the United States and China. Stabilisation can only take place after the conflict has been relaxed and global markets have improved.
