- The threat of 100% tariffs on China by the US triggered massive sell-offs in crypto.
- Bitcoin fell nearly 10% and broke through $108.000 intraday.
- About $280.000 billion of market capitalization evaporated.
- Cascading liquidations, platform tensions, and contagion to US equities.
The cryptocurrency market experienced a heart-stopping day in which Bitcoin and major altcoins turned red in a matter of hours. The The shock came after the White House announced it would raise tariffs on Chinese imports to 100% starting November 1., news that accelerated sales.
In the center of the gale, Bitcoin fell by nearly 10%. y temporarily pierced the $108.000, while the The total market value wiped out around 280.000 billion euros in one fell swoop.Speculative sectors such as memecoins (-35%) and the Artificial Intelligence tokens (-30%) They especially noticed the blow.
Tariff announcement triggers sell-offs
La tariff escalation announced by Donald Trump, who called China "hostile" and referred to export controls on rare metals, triggered an immediate spike in risk aversionThe US president noted on his social network that they are studying additional countermeasures, which increased uncertainty and precipitated profit-taking in crypto.
For now, China has responded with new measures and Bitcoin has suffered a sharp drop, which leaves many unknowns in the air.
Blow to Bitcoin and major altcoins
At the epicenter of the movement, BTC broke through $108.000 intraday After a rapid double-digit decline, among the leading altcoins, Ethereum fell to the $3.540 area (-18%). XRP fell by around 32% up to $1,87 and Solana fell 20% to $174.
Selling pressure spread unevenly, with 50% intraday retracements in some smaller-cap tokens, and a deterioration in sentiment reflected in the Fear & Greed Index, which returned to the extreme fear.
The sharp turn caused cascading forced liquidations: More than 181.000 long traders were wiped out, with closings worth around $624 millionThe speed of the adjustment left thinner-than-usual order books and striking price gaps.
The rebound in volume was notable and Coinglass suffered a temporary drop due to the avalanche of settlement queries in exchanges like Bitso. According to on-chain data, the short-term holders They accounted for a good part of the latent losses, exceeding 30% in certain assets during the worst minutes of the movement.
Contagion effect on equities and macro context
The shock was not limited to crypto: the S&P 500 fell by 2,7% (182 points) and the Dow Jones fell 1,9%. (878 points) after the tariff headline. The correlation with risk assets was evident, with Oracle losing around 2,5% and the shadow of the U.S. government shutdown extending into its eighth day.
The market had just marked a historical capitalization above 4,3 trillion of dollars on October 6 and could now face a more lateral phase. The narrative shift from recent optimism to caution was especially swift.
Large portfolio movements and levels to watch
On the eve of relegation, a OG Bitcoin wallet opened short positions worth about $1.100 billion in BTC and ETH, which showed unrealized profits close to 27 million, according to Lookonchain. The behavior of these "strong hands" was again key to calibrating the flow.
After the scare, Part of the market is looking again to the $120.000 area as a short-term technical reference. for Bitcoin, after its recent all-time high at $126.198. Attention is also focused on the inflows and outflows de exchanges like Binance and in the available liquidity.
Recent precedents and what analysts are watching
This isn't the first time a tariff headline has shaken up crypto: Sales were already observed in April and August following similar announcements. from WashingtonAnalysts warn of new taxes could cool the momentum which had been seen since the beginning of October.
In the short term, the focus will be on the details of trade policy and China's response, as well as the performance of traditional risk assets. With high volatility, Risk management is once again the dominant slogan among participants.
The shock made it clear that Bitcoin remains sensitive to political shocks, that liquidations can amplify movements and that contagion with other markets is very present; pending greater visibility, a cautious tone is gaining ground.
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