Crypto Market Crash: Why Bitcoin, Ethereum, Solana & XRP Tumbled Today

The global crypto market crash on the 11th of October 2025. Hence, it wiped out billions in value within hours. However, the renewed U.S.-China trade tensions and cascading forced liquidations spurred a sharp sell-off. Thus, Bitcoin, Ethereum, Solana, and XRP collapsed as risk sentiment rolled across asset classes.  Moreover, below are the details about these collapses:

• Bitcoin dropped from an intraday high of ~$122,456 to below ~$112,000, which shed nearly 8 %.
• Ethereum slid from ~$4,386 to under ~$3,800.
• Solana fell to ~$182.36. However, the  XRP tumbled to ~$2.46, with intraday lows near $1.89.

Crypto markets are often treated as high-beta assets. In addition, it mirrored the increased volatility in equity and commodity markets. 

Why the Crypto Market Crash Occurred: Key Drivers & Triggers

1. U.S. Escalates Trade War with China

The immediate catalyst was the US announcement of imposing new tariffs – an additional 100 percent tax on Chinese imports. Hence, the decision has raised the combined tariffs to 130 percent  (30% existing + 100% new), which will come into effect on November 1, 2025. Plus, this sudden change reignited fears of a global trade war, which triggered a broad risk asset.  However, China is a big investor in cryptocurrency. So, the tariff also hit psychology directly. 

2. Record Liquidations Amplified the Fall

According to Coinglass,  more than $19 billion of leveraged positions were liquidated. Hence, it affects more than 1.6 million traders. In addition, more than $7 billion of these were liquidated in only one hour. Hence, Bloomberg called it the largest liquidation event in crypto history. Plus, some trading desks believe the total losses might ultimately surpass $30 billion. 

3. Macro Pressures: Strong U.S. Dollar & Rising Yields

Liquidity tightened throughout the world as the US dollar strengthened and the treasury yield increased. Moreover, speculative and leveraged bets were also squeezed out, which put an extra downward pressure on the digital assets. 

4. Fragile Market Structure & Overextension

Crypto had been riding a strong bullish sentiment, which made it vulnerable to sudden shocks. Moreover, the combination of poor risk buffers and margin exposure also magnified the drop. 

Market Snapshot & Metrics

• Total crypto market cap collapsed from ~$4.30 trillion to ~$3.74 trillion.
• Daily trading volume stayed high at ~$490.23 billion.
• Bitcoin’s dominance: ~59.8 %. Ethereum: ~12.2 %.

As of 15:34 PM (UTC):

• BTC was down ~7.88% at $111,790, with ~$183.88 billion in volume.
• ETH fell ~11.58% to $3,837, volume ~$112.75 billion.

What Comes Next: Short-Term Scenarios & Key Levels

Weekend trading often seen liquidity, which can intensify the volatility. Plus, the continued sell-off might push the price deeper. However, the following is the list of predictions about the crypto market in the next 48 hours:

• Bitcoin: key support zone between $110,000–$115,000. A break below could open further losses to ~$105,000.
• Ethereum: support near $3,600; a sustained slide below that might trigger further downside.

Suppose the US moderates its stance or clarifies the trade policy. In that case, there may be a short-lived rebound. However, traders who closed the short position could spark the relief rally. Plus, any new tariff escalation or export restriction on technology could reignite selling across the altcoin. 

The institutional reentry hinges on clearer macro signals on longer terms, especially on the US rate guidance, inflation data, and policy direction. 

Why UAE & Middle East Investors Should Care

The crypto market crash is global. Still, the UAE and the Gulf market are deeply connected with the global capital inflows and crypto ecosystem. Moreover, the UAE has positioned itself as a regional crypto hub due to clear regulation and licensing frameworks. However, crypto firms are required to comply with the AML/KYC and transaction monitoring aligned with FATF standards. 

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