Bitcoin Crashes Below $112K — Trump’s Tariff Shock Sends Crypto Into Tailspin

The world’s largest cryptocurrency just had its worst day of 2025 — a $9,000 nosedive triggered not by crypto drama, but by global politics.

⚡ Quick Hits

• 📉 BTC down 7% in 24 hours — drops from $120K to $111K
• 💥 $4.1T → $3.6T total crypto market cap in hours
• 🇺🇸 Trump announces 100% tariffs on Chinese imports — markets panic
• 🏦 Traders flee risk: tech stocks, crypto, even commodities
• 💣 Liquidations explode as funding rates turn negative
• ⚠️ Key level: $110K — break below could test $106K or $100K

🌍 The Macro Shock That Shook Crypto

Friday night wasn’t supposed to end like this. Bitcoin, riding October’s bullish wave, suddenly collapsed over 7% in hours, wiping billions off the board.

The reason? A political grenade from Washington.

President Donald Trump announced 100% tariffs on all Chinese imports, effective November 1 — igniting fears of a renewed U.S.–China trade war.

Markets went into full risk-off mode. Tech stocks bled. Treasury yields spiked. And Bitcoin — the supposed “inflation hedge” — plunged alongside everything else.

“When tariffs hit, cash becomes king,” one trader posted on X. “And Bitcoin isn’t cash.”

📊 The Technical Meltdown

The charts tell a story of precision and panic:

• Lost $118,600 — key support turned resistance
• Sliced through the 50-day SMA (~$114,500)
• Found temporary footing near $111,350, just above the $110K zone
• The daily candle? A brutal red engulfing bar — panic and liquidation everywhere

Funding rates flipped negative across derivatives platforms as leveraged longs were obliterated. Analysts called it the sharpest single-day correction of 2025, even compared to March 2024’s breakdown.

If BTC loses $110K, eyes turn to $106K (200-day SMA) and the psychological $100K line.

💣 Contagion Across the Market

The pain wasn’t isolated.

• Ethereum (ETH) dropped below $4,000, erasing weeks of gains
• BNB, SOL, XRP — all down double digits
• DeFi, L2s, AI tokens — wiped out their “Uptober” profits overnight

Total liquidations hit hundreds of millions within hours. The entire market went risk-off.

But unlike past sell-offs — no exchange hack, no DeFi exploit — this crash was macro-triggered. Bitcoin fell with the S&P, not against it.

“Bitcoin has graduated into the big leagues,” said an analyst from Delphi Digital. “When macro shifts, it moves with everything else now.”

🧭 What’s Next for Bitcoin?

Analysts see two short-term paths:

🩹 Quick Recovery (V-shape bounce)

If BTC holds $111K–$110K and volume returns, a retest of $118K–$120K is on the table. This would frame the drop as a panic dip, not a true reversal.

🕳️ Extended Correction

If global markets keep tanking, BTC could slide to $106K–$100K, testing long-term averages before finding support.

With “Uptober” historically bullish, traders now face the paradox: Is this the buy-the-fear moment — or the macro reckoning that breaks the rally?

💬 Bigger Picture: Bitcoin Breathes Wall Street Air

Bitcoin may be decentralized, but it’s not detached. This sell-off proves that macroeconomics still rule the game — tariffs, rates, and geopolitics now move the charts as much as on-chain data does.

ERC standards, DeFi innovations, AI bots — all of it bows to policy shocks when volatility hits.

“Crypto wants to be uncorrelated,” one veteran trader said. “But in times like this, it still breathes Wall Street air.”

TL;DR

• 💥 BTC plunges 7% to below $112K — worst day of 2025
• 🇺🇸 Triggered by Trump’s 100% tariffs on China
• ⚠️ Key supports: $110K, $106K, $100K
• 💣 Liquidations surge, funding turns negative
• 🧠 Macro > on-chain — Bitcoin now moves with global markets
• 🌍 The new reality: decentralized doesn’t mean disconnected