Trump's tariffs ignite trade war! Bitcoin today's news: falls nearly 100,000 dollars, 20 billion liquidated

President Trump confirmed on October 15 that the United States and China are in a trade war, announcing a 100% Trump tariff on imports from China, which resulted in digital assets wiping out about 20 billion dollars in open contracts within 24 hours. Today's news about Bitcoin shows that the BTC price fell to 108,120 dollars on October 17.

Trump tariff confirmation triggers $20 billion liquidation tsunami

(Source: X) President Trump clearly stated in a statement on October 15: “We are now in a trade war. We have 100% tariffs. Without tariffs, we have no defense. They have used tariffs against us.” Previously, Trump had threatened to impose a 100% Trump tariff on Chinese imports, and this confirmation further escalated the tension of the week. This marks the beginning of a currency deadlock, with its ripple effects reaching deep into the global markets.

According to CoinGlass data, Bitcoin and Ethereum led the decline, with approximately $20 billion worth of open contracts liquidated within 24 hours. This is one of the largest single-day liquidation events of 2025, continuing the rare “Red October” for top cryptocurrencies. Today's news for Bitcoin shows that the BTC price has fallen over 15% from its peak, dropping to $108,120 on October 17, just a step away from the critical psychological barrier of $100,000.

The direct impact of Trump's tariffs lies in the tightening of liquidity. Tariffs act like an invisible tax, making imported goods more expensive, increasing input costs, exacerbating inflation, and forcing central banks to maintain high interest rates for a longer period. These factors often deplete the liquidity of risk assets like Bitcoin. In a high interest rate environment, investors are more inclined to hold risk-free treasury bonds rather than volatile cryptocurrencies.

The margin call requirements faced by leveraged traders accelerated this chain reaction. When the price of Bitcoin fell rapidly, traders using high leverage were forced to Close Position or add margin, which further depressed the price, triggering more liquidations and creating a vicious cycle. Last week's $20 billion wave of liquidations was a manifestation of this mechanism, highlighting the market's vulnerability in the face of Trump tariff news.

Is the 2018 Tariff History Repeating? Bitcoin Faces a $6000 Style Crash

(Source: Polymarket)

History provides unsettling reference coordinates. In 2018, a similar Trump tariff announcement triggered a series of fluctuations, causing the price of Bitcoin to fall from $17,000 at the beginning of the year to below $6,000, with an annual decline of over 70%. Whether this pattern will repeat in 2025 has become the biggest question in the market. Institutional investors are gradually shifting towards defensive positions in gold, Treasury bills, and short-term government bonds, while the trading of Bitcoin still behaves like a high-beta macro asset, becoming collateral damage in the process of fleeing to safe assets.

However, the current situation has become more complicated. Unlike the 2018 cycle, Bitcoin is no longer a retail-driven tool, but a regulated asset class with deep ETF exposure and a transparent derivatives market. Spot ETFs like BlackRock's IBIT and Fidelity's FBTC manage over $100 billion in assets, and the behavior patterns of these institutional investors are vastly different from those of retail investors in 2018.

CoinShares research director James Butterfill warned in February that the direct impact of Trump’s tariffs on Bitcoin is “undoubtedly negative.” Butterfill explained that tariffs would slow economic growth, raise inflation expectations, and trigger a flight to safety. In this market situation, Bitcoin reacts to liquidity trends, leading to short-term volatility. Today's Bitcoin news confirms this judgment, as the price drop directly corresponds to the timing of Trump’s tariff announcement.

Traders are increasingly convinced that the possibility of Bitcoin continuing to rise this month is small. On Polymarket, the likelihood of Bitcoin reaching $130,000 by the end of the month is lower than the chance of falling back to $95,000, reflecting how macro policies shape sentiment around digital assets. This bearish bias in the prediction market shows that professional traders' concerns about the impact of Trump’s tariffs have already been reflected in actual positions.

Institutions Shift to Gold, Bitcoin's Hedging Position Questioned

After Trump confirmed the tariffs, there was a significant change in the direction of institutional funds. Gold prices broke historical highs, approaching $3,700 per ounce, while Bitcoin fell over 15% during the same period. This divergence exposes a key issue: during a real geopolitical crisis, institutional investors still do not trust Bitcoin as a safe-haven asset.

The analyst from Bitunix told CryptoSlate that the confirmation of Trump's tariffs has intensified the economic confrontation between the two countries and reshaped global risk preferences. Its impact is twofold: a short-term liquidity shock and a structural shift in the mid-term capital view towards diversified assets. In the short term, increased uncertainty prompts institutions to lower risks. Funds are being rebalanced towards cash equivalents and gold, triggering widespread sell-offs in high liquidity markets such as cryptocurrencies.

Today's news about Bitcoin shows that US spot Bitcoin ETFs experienced capital outflows following Trump's tariff announcement. Over the past week, major ETF products have seen a cumulative net outflow of over $300 million, indicating that institutional investors are reducing their exposure to cryptocurrencies. This capital flow is corroborated by on-chain data, showing that long-term holders are reallocating their chips, while new buying interest is clearly insufficient.

However, not all analysts hold a pessimistic view. Butterfill pointed out that in a stagflation scenario, the recovery speed of top cryptocurrencies is faster than that of stocks. He said, “In the long run, the role of Bitcoin as a hedge may be strengthened, especially if Trump's tariff policies lead to economic instability.” This perspective suggests that when the traditional financial system is shaken by trade wars, the decentralized nature of Bitcoin will gain renewed attention.

Opportunity for De-dollarization? Geopolitics May Reverse Bitcoin's Fate

However, behind the initial turmoil lies different considerations. If the trade war remains limited to Trump's tariffs and export controls, the slowdown in global economic growth may suppress demand for cryptocurrencies. However, if the confrontation extends to financial settlement systems, Bitcoin may once again become a geopolitical hedge tool. In this case, the United States may impose restrictions on cross-border dollar access or payment channels, forcing investors to seek alternatives.

In this situation, digital assets will transform from “risk assets” to “alternative reserves.” As the Bitunix team explains: “The weakening of confidence in the dollar system may strengthen the argument for Bitcoin as a 'de-dollarization' and 'alternative value reserve' asset, thereby creating structural support.” This transformation cannot be achieved in the short term, but the trade war triggered by Trump tariffs may become a catalyst.

Bitcoin's news today also shows some positive signals. Despite the price fall, the fundamental indicators of the Bitcoin network remain robust. The mining difficulty continues to rise, indicating that miners have confidence in the long-term outlook. Although the number of active addresses on-chain has decreased, it still maintains a healthy level. More importantly, Bitcoin's degree of decentralization has been validated amid the turmoil caused by Trump's tariffs, and the network has operated without any disruption.

From a technical perspective, $108,120 is a key support level. If the psychological barrier of $100,000 is broken, the next support level will be in the range of $93,000 to $95,000. Conversely, if it manages to hold and rebound, the resistance level is between $114,000 and $117,000. The subsequent developments of Trump's tariffs will determine Bitcoin's trend, and investors should closely monitor the progress of US-China negotiations and the Federal Reserve's policy responses.