Breaking News: Bitcoin Skyrockets After US-China Trade Tensions Ease – Could $120K Be Next? (October 2025 Update)
- What Triggered Bitcoin’s Historic Crash and Rebound?
- Is a $6 Billion Short Squeeze Imminent?
- Why Are Traders Flocking to Bitcoin Hyper ($HYPER)?
- Gold or Crypto? The Safe Haven Debate Rages On
- FAQ: Your Burning Questions Answered
In a wild 48-hour rollercoaster, bitcoin (BTC) crashed to $85K after Trump’s 100% China tariff threat, only to rebound violently to $110K when he walked it back. Now, analysts warn of a potential $6B short squeeze if BTC hits $116K. Meanwhile, Solana-based Bitcoin Hyper ($HYPER) gains traction as its Layer-2 solution promises DeFi utilities for BTC holders. Here’s why traders are calling this the most volatile week in crypto history.
What Triggered Bitcoin’s Historic Crash and Rebound?
Last Friday night (October 10, 2025), Bitcoin plunged 30% in 3 hours after former President Trump announced 100% tariffs on Chinese imports via Truth Social. "I’ve never seen liquidation cascades like this," said BTCC analyst Mark Chen, referencing CoinGlass data showing $4.2B in long positions wiped out. But the panic was short-lived. By Sunday afternoon, Trump tweeted:– sending BTC up 18% within hours. This whipsaw action exposed how fragile crypto markets remain despite trillion-dollar valuations.
Is a $6 Billion Short Squeeze Imminent?
According to Cointelegraph, over $6B in BTC short positions could get liquidated if prices reach $116K (per CoinMarketCap data). "We’re seeing textbook capitulation," noted TradingView’s CryptoEd, pointing to funding rates flipping negative during the crash. The last time BTC saw this much open interest was before its 2021 bull run. Interestingly, the CME gap at $98K remains unfilled – a technical factor that could fuel further upside.
Why Are Traders Flocking to Bitcoin Hyper ($HYPER)?
While BTC dominates headlines, Solana-based Bitcoin Hyper has quietly raised $23M in its presale. Their Layer-2 solution aims to bring DeFi features like staking and lending to Bitcoin – something previously exclusive to Ethereum. "It’s the holy grail," claimed pseudonymous developer SatoshiLite during last week’s AMA. The project’s testnet processed 12,000 TPS in recent trials (per their whitepaper), though mainnet launch isn’t until Q1 2026. Early buyers get $HYPER tokens at $0.12 versus the projected $0.35 listing price.
Gold or Crypto? The Safe Haven Debate Rages On
During Friday’s crash, gold spiked 5% while crypto bled – reviving the "digital gold" debate. But here’s the twist: BTC’s recovery outpaced gold’s by 400%. "Crypto is the new volatility play," argued former Goldman Sachs strategist Raoul Pal on Real Vision. He notes BTC’s 90-day correlation with the S&P 500 has dropped to 0.2 since August, making it less tied to traditional markets. That said, with US inflation still at 4.9% and debt-to-GDP over 130%, both assets could benefit from macroeconomic uncertainty.
FAQ: Your Burning Questions Answered
How high could Bitcoin go after the short squeeze?
If the $6B in shorts get liquidated at $116K, the resulting buy pressure could push BTC toward $120K. From there, psychological resistance becomes key. Remember, this isn’t financial advice!
Is Bitcoin Hyper a good investment?
While its tech is promising, Layer-2 solutions face fierce competition (see Lightning Network). Always DYOR – the BTCC team hasn’t yet evaluated $HYPER’s tokenomics.
Will Trump’s policies keep affecting crypto?
Historically, Trump’s tweets caused 5 of Bitcoin’s 10 biggest daily moves since 2020 (per Messari data). With the 2026 election heating up, expect more volatility.
