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Bitcoin has experienced one of its most severe declines in recent times, briefly falling to $102,000 following a statement by US President Donald Trump that he would impose a 100% tariff on Chinese imports. The action triggered a panic in the financial markets, resulting in significant losses for the cryptocurrency industry.
CoinGlass data showed that within 24 hours, approximately 8.02 billion of long positions were liquidated on the market, with 2.19 billion of Bitcoin being sold alone. The mass liquidations were an indication of a powerful risk-off mood as traders scrambled to de-expose themselves.
Swan Bitcoin CEO Cory Klippsten wrote that the market's response to Trump's tariff news was a classic case of macroeconomic whiplash. He clarified that the volatility of Bitcoin may not be a thing of the past and cautioned that traders would have to prepare to face further turbulence. Klippsten states that the wider market crash pulled Bitcoin down before it could be re-supported.
He noted that macro-driven dips often remove overleveraged traders, allowing the market to reset and potentially recover. “Bitcoin can get dragged around a bit before it finds support and starts to decouple again,” he said. His comments reflected growing unease among investors facing unpredictable swings in both traditional and digital markets.
Ray Salmond, Cointelegraph’s head of markets, said that leveraged traders “were totally caught off guard” as Trump’s tariff decision sent shockwaves through the crypto market. The abrupt policy move mirrored past volatility triggered by similar announcements earlier this year.
It was not the first time Bitcoin had fallen sharply following a tariff announcement. In April, Trump’s earlier trade measures spurred fears of a global recession, leading to another steep sell-off. On February 1, when Trump signed an executive order imposing tariffs on goods from China, Canada, and Mexico, Bitcoin briefly dropped below $100,000.
The pattern shows a clear correlation between geopolitical tension and Bitcoin’s immediate price behavior. Each major policy shock has prompted rapid declines, followed by eventual stabilization. Yet, analysts note that such drawdowns often reset the market, clearing excess leverage before new rallies form.
At press time, CoinMarketCap data showed Bitcoin trading at $112,448, down 7.54% in the past 24 hours. The asset’s market cap stood at $2.24 trillion, while trading volume soared by 185% to $203.49 billion, indicating heightened investor activity despite uncertainty.
The data provided by CoinGlass between October 6 and October 11 revealed that the long/short ratio of Bitcoin was changing dramatically, indicating that traders were uncertain. The ratio remained around the 1.0 mark throughout the week, indicating that there was almost equal placement of buyers and sellers. Longs briefly dominated on October 9, but then the shorts reasserted their dominance, indicating a change of heart in the face of macro-driven volatility.
In the meantime, a report by Bitwise Asset Management, based on Bloomberg data, revealed that Bitcoin has a long-term history of recovering well following market declines. The average yearly returns of Bitcoin between 2014 and 2024 were 189.58% in the year following major declines in the S&P 500, which outperformed both gold and equities.
With the Trump tariff shock being absorbed by the market, the question that stands out is whether the resilience of Bitcoin will overcome global uncertainty again.
Bitcoin’s sharp fall to $102,000 followed Trump’s 100% tariff announcement on Chinese imports, triggering over $8 billion in crypto liquidations. Analysts, including Cory Klippsten, warned of more volatility as traders recalibrate positions amid global uncertainty.
Related: Bitcoin News Today: Bitcoin Shorts Rise as Spot Demand and ETF Inflows Stay Strong
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