The Reason for the crypto and stock market crash on Friday 10th October, 2025

Trump was the cause of Yesterday's dump.

I was looking for a reason for a sudden dump and saw the announcement he made. 

U.S. President Donald Trump announced that he would impose a 100% tariff on Chinese imports, including critical software. 

This reignited fears of a global trade war, souring investor sentiment and making risky assets like crypto less attractive. 

2. Mass Liquidations (Especially of Long Positions)

As prices began falling, leveraged traders (those who borrowed to take larger positions) were forced to liquidate. Over $7–9 billion in positions were reportedly liquidated within a short period. 

Bitcoin alone saw over $1.8B in liquidations, while Ethereum lost ~$1.7B in that wave. 

These forced sell-offs amplify downward momentum (a cascade effect). 

3. Macro / Safe-Haven Rotation & Rising Bond Yields

With heightened uncertainty, many investors shift capital from high-risk assets (like crypto) to safer ones (like government bonds).

Rising U.S. Treasury yields make safer fixed-income investments more attractive, drawing capital away from riskier markets. 

Also, after initial optimism about interest-rate cuts, the market may be rethinking expectations, adding stress. 

4. Support Breaks / Technical Weakness

Cryptocurrency markets are sensitive to technical breakpoints. Once key support levels failed (e.g. Bitcoin slipping under ~$120,000), traders often trigger stop-losses, exacerbating the decline. 

Algorithms and bots may further accelerate these moves once those thresholds are breached. 

My take: Always consider your fundamentals after making your technical analysis.