Crypto Market Crash: Bitcoin and Ethereum Plunge as US-China Tensions and $5B Liquidations Shake Investors
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The post Crypto Market Crash: Bitcoin and Ethereum Plunge as US-China Tensions and $5B Liquidations Shake Investors appeared first on Coinpedia Fintech News The crypto market has entered a turbulent phase this week as Bitcoin and Ethereum plunged sharply, erasing recent gains and triggering over $5 billion in liquidations. Escalating US–China trade tensions, a stronger dollar, and delayed ETF approvals have fueled widespread selling pressure across digital assets. With the Bitcoin price now hovering near $112,000 and traders watching key support levels, the market faces a crucial test. Analysts believe this correction could either reset momentum or signal a deeper macro-driven pullback ahead. Bitcoin and Ethereum Lead the Sell-Off The crypto market witnessed a sharp correction this week, with Bitcoin (BTC) falling nearly 7.5% to $112,578, while the Ethereum (ETH) price slumped 13% to $3,799. The drop followed Bitcoin’s short-lived rally to a record high of $125,456, triggering heavy profit-taking across major exchanges. This retracement aligns with historical post-ATH corrections, where BTC typically sheds 10–15% before stabilizing. Market data from CoinGlass shows that over $5.6 billion in leveraged long positions were liquidated within 24 hours, marking one of 2025’s largest single-day liquidation events. Analysts warn that Bitcoin’s key support now lies between $109,000 and $114,000, a zone that could determine whether the correction deepens or reverses. Ethereum’s weakness mirrors this pattern, with traders watching the $3,500 support zone closely for a potential rebound. Macroeconomic Jitters Intensify Crypto Volatility Global risk sentiment turned sharply negative after the U.S. announced new 100% tariffs on Chinese tech imports, reigniting fears of a prolonged trade conflict. The resulting flight to safety boosted the U.S. dollar index (DXY) above 107, its highest level since early 2024, pressuring speculative assets like crypto. At the same time, the 10-year Treasury yield held firm near 4.65%, indicating tight…
Filed under: News - @ October 11, 2025 8:26 am