Bitcoin Prices Face Renewed Pressure After Tariff Shock and Exchange Disruptions

Bitcoin’s price took another hit on Saturday October 11, 2025, as markets struggled to hold onto early gains following the sharp decline triggered by President Trump’s announcement of 100% tariffs on Chinese goods on Friday. The cryptocurrency dipped to a low of around $109,715 during the day before edging up slightly to near $109,970, reflecting a modest 1-2% drop from intraday highs above $111,000. This volatility came after an initial rebound from lows in the $103,000 to $105,000 range, but trading remained choppy amid weekend thin volumes.

Traders watched closely as the session unfolded, with hopes for stabilization fading into the evening when prices began erasing much of the day’s progress. The broader crypto market echoed this pattern, with many assets showing similar hesitation to climb back. While the tariff news from October 10 dominated headlines, fresh details emerged about exchange-specific issues that deepened the sell-off.

Exchange Depegs Amplify Market Turmoil

A cascade of liquidations totaling over $19 billion in the past 24 hours played a central role in the ongoing pressure, with the majority coming from long positions. These forced sales stemmed from the initial tariff-induced panic but lingered into the next day, creating uneven trading conditions. Even as some positions unwound, residual selling from overleveraged accounts kept downward momentum alive.

Discussions across trading platforms highlighted problems on Binance, where collateral assets like USDE, wBETH, and BnSOL saw severe depegging events. USDE fell to as low as $0.65 on the exchange compared to over $0.90 elsewhere, while wBETH dropped to around $430 and BnSOL to $34.90. These shifts, linked to Binance’s Unified Account margin system that accepts yield-bearing and proof-of-stake derivatives as collateral, sparked additional forced liquidations beyond what the tariff news alone might have caused.

The depegging occurred during a narrow window from 21:36 to 22:16 UTC on October 10, coinciding with Binance’s recent oracle price adjustment announcement on October 6, ahead of its full rollout on October 14. Spot trading volumes for these assets surged to $3.5 billion to $4 billion, leading to estimated losses between $500 million and $1 billion. Binance responded by pledging compensation for affected futures, margin, and loan holders, while introducing safeguards such as redemption prices in index weights and minimum thresholds for USDE.

Speculation grew in crypto circles about whether these events pointed to a targeted exploitation of Binance’s margin mechanics, which rely on internal spot order books rather than fixed oracles for liquidation pricing. Reports of system overloads and frozen interfaces during the peak added to concerns, with some altcoins experiencing steeper declines on Binance than on other platforms. Analysts drew comparisons to past incidents like the LUNA-UST collapse, underscoring risks in using non-fiat stablecoins as high-value collateral in low-liquidity settings.

Bitcoin’s technical setup added to the uncertainty, as the price tested support between $108,000 and $110,000 after breaching key levels from earlier in the week. Recent highs near $126,000 had stretched valuations, and bearish chart patterns like extended red wicks hinted at possible further slides toward $100,000 without fresh buying interest. Relative Strength Index readings hovered in neutral to oversold territory, yet tariff-related caution prompted widespread profit-taking.

The 100% tariff on Chinese imports, set to take effect November 1, continued to cast a shadow over risk assets, evoking memories of prior 2025 trade frictions that dented investor confidence. Whispers of potential Chinese Bitcoin sales in retaliation circulated, though nothing concrete surfaced. On a brighter note, institutional moves provided some floor, with reports of BlackRock acquiring 45,000 BTC at averages around $105,000 and investor Grant Cardone adding 300 BTC during the dip.

Market observers like Tom Lee framed the 10-15% pullback from recent peaks as a necessary reset after a 36% run-up since April. The VIX index’s 29% spike signaled heightened fear, but he viewed it as a chance for accumulation rather than a fundamental shift. This marks the 49th correction of similar scale since 2017, excluding extreme events, and history suggests Bitcoin often bounces back from such episodes.

As Sunday, October 12 dawned, prices stabilized around $110,000 to $111,500, but weekend liquidity could magnify any swings. A push above $112,500 might encourage bullish sentiment, while a drop below $108,000 could invite more downside. Traders remain vigilant for updates on the tariff’s ripple effects and exchange recoveries, as these factors shape the path ahead in a market still finding its footing.