Bitcoin and other major cryptocurrencies suffered sharp declines on October 2025 following a tweet from U.S. President Donald Trump imposing tariffs on Chinese imports, reigniting trade war fears globally.
The market instability highlighted the crypto market’s vulnerability to geopolitical tensions, causing significant liquidations and dampening investor confidence, impacting assets like Bitcoin and Ethereum negatively.
Bitcoin plummets amid Trump’s tariff announcement, affecting major cryptocurrencies.
The cryptocurrency markets in 2025 faced a significant downturn following former President Donald Trump’s announcement of a 100% tariff on Chinese imports. This decision stoked fears of a new U.S.-China trade war, leading to a massive sell-off in major cryptos like Bitcoin and Ethereum, and a substantial liquidation of positions.
Trump Tariff Announcement Triggers Crypto Sell-Off
In October 2025, cryptocurrency markets experienced significant decline. This was precipitated by Donald Trump’s announcement of a 100% tariff on Chinese imports, which led to fear of renewed U.S-China trade wars.
The announcement sparked a massive sell-off in cryptocurrencies. Key players like Bitcoin and Ethereum saw sharp declines. Market participants reacted swiftly, resulting in substantial liquidations across exchanges.
$19 Billion in Crypto Positions Liquidated Amid Fear
Reports indicate over $19 billion in crypto positions were liquidated. Investor confidence nosedived, with major coins experiencing significant value drops. This sentiment was echoed across financial institutions expressing concerns over market stability.
On-chain data revealed substantial overleveraging before the crash. Bitcoin fell to $104,782 while Ethereum’s value decreased by nearly 6%. These figures underscore vulnerabilities within the highly speculative crypto market.
Arthur Hayes, Former CEO of FTX, remarked, “The market was already heavily overleveraged, and this political move has struck the market at a vulnerable point.”
Past Events Highlight Crypto’s Geopolitical Sensitivity
This event mirrors past incidents like the 2020 pandemic crash. Global events have historically shown to impact crypto markets heavily, highlighting their inherent instability and sensitivity to geopolitical issues.
Experts noted that the market’s resilience will be tested following these developments. The recovery will depend on collective responses from institutional and retail investors. Market adaptation echoes trends seen during previous economic downturns.
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