Bitcoin plummets after Trump announces 100% tariffs on China

Bitcoin Faces Its Worst Crash of the Year

On Friday night, the crypto market plunged into chaos as Bitcoin ( $BTC ) crashed from over $120,000 to a low near $111,000, wiping out tens of billions of dollars in market value within hours. This sudden drop marked the steepest single-day decline of 2025, with BTC falling over 7% in 24 hours and triggering a broad sell-off across all major altcoins.

The trigger? President Trump.

This shocking announcement rattled global markets, with investors fleeing risk assets, including cryptocurrencies, in a classic flight-to-safety move.

Chart Analysis: Free Fall from Key Support Levels

As shown in the chart below, BTCUSD broke through several key levels in a single candlestick:

• Lost support at $118,600, which turned into resistance.
• Broke below the 50-day moving average (around $114,500), indicating a clear shift in momentum.
• Briefly touched $111,350, just above the critical support zone near $110,000—the last line of defense before the 200-day moving average (around $106,600).

BTC/USD 1-Day Chart - TradingView

The daily candlestick formed a massive red engulfing bar, confirming strong selling pressure and panic selling on exchanges. This structure is similar to previous macro crashes, but the speed and scale this time make it Bitcoin's most severe single-day correction so far in 2025.

If the $111K–$110K area is lost, the next downside targets are near $106K (200-day moving average) and the psychological $100K support.

Total Market Cap: Over $400 Billion Wiped Out

The broader crypto market mirrored Bitcoin's collapse. According to total market cap data (see chart), the crypto market dropped over 10%, falling from about $4.1 trillion to just above $3.6 trillion, before attempting a slight rebound.

• Every major sector—from DeFi to Layer 2 to AI tokens—was hit hard.
• Ethereum (ETH) fell back below $4,000.
• BNB, SOL, and XRP all posted double-digit losses.
• Even early Uptober top performers like ZEC and TAO gave up most of their weekly gains.

Total crypto market cap in the past few hours - TradingView

The sudden liquidity crunch led to long traders being liquidated as funding rates turned negative, adding further downward momentum.

Why Did the Tariff News Hit So Hard?

Trump's 100% China tariff policy, set to take effect on November 1, reignited fears of a global trade war, threatening supply chains, inflation control, and economic stability—macro conditions that often spook crypto investors.

While Bitcoin is often seen as a hedge against geopolitical turmoil, this time the price action shows traders prioritized cash and stability over risk exposure. The immediate reaction in both futures and spot markets shows institutions reducing risk until macro clarity returns. Notably, all markets crashed, not just crypto.

What’s Next for Bitcoin?

Analysts see two possible paths in the short term:

1. Rapid Recovery (V-Shaped Rebound)

If Bitcoin holds above $111K–$110K and buying volume returns, it could retest $118K–$120K in the coming days. This would confirm the move as a panic drop rather than a full reversal.

2. Prolonged Correction

If panic persists and macro pressures increase, Bitcoin could fall towards $106K–$100K, testing long-term moving averages before stabilizing.

Given that October has historically brought bull market trends, traders are watching to see if this tariff-driven crash will be a short-term buying opportunity or the start of a broader risk-off phase.