Bitcoin Plunges 7% as Trump's Tariff Announcement Sparks Global Market Chaos
Bitcoin's price plummeted to $111K from above $120K in a matter of hours following President Trump's announcement of a 100% tariff on China. The sudden drop led to a wider sell-off across the crypto market, with the total market cap falling by over 10%. This marks the steepest one-day decline of 2025 for Bitcoin.
The catalyst behind this crash was likely the rekindled fears of a global trade war, which can spook crypto investors. While Bitcoin has often been seen as a hedge against geopolitical chaos, this time it seems traders are prioritizing cash and stability over risk exposure. The immediate reaction across futures and spot markets shows that institutions are reducing their exposure until macro clarity returns.
Analysts see two possible short-term paths for Bitcoin: either a quick recovery if the price holds above $111K-$110K, or an extended correction if panic persists. Given the historical bullish trends in Uptober, traders are watching whether this tariff-driven crash becomes a short-term buying opportunity or the start of a broader risk-off phase.