TL;DR
- Bitcoin dropped to $117,890.18 and Ethereum to $4,106.14 following Donald Trump’s latest comments on tariffs against China, pressuring major U.S. stock indices at the same time.
- Crypto liquidations surpassed $770 million in 24 hours, mostly affecting long positions.
- Despite the price drop and a partially shutdown government, nearly half of Myriad Markets predictors expect Bitcoin to reach $140,000 before falling to $110,000.
The market reacted quickly after Trump signaled a possible surge in tariffs on Chinese imports, causing simultaneous pullbacks in both equities and cryptocurrencies. Bitcoin fell 1.8% over the last 24 hours, trading at $117,890.18 with a market cap of $2.34 trillion. Ethereum lost 4.25% in the same period, trading at $4,106.14 with a market cap of $495.67 billion. Investor sentiment is tense, with heightened caution evident across futures markets, derivatives platforms, and institutional portfolios. Trading volumes spiked as traders reassessed positions, highlighting growing market sensitivity to geopolitical announcements.
The declines were not limited to crypto. The Nasdaq is down 1.77%, the S&P 500 fell 1.25%, and the Dow Jones lost 0.83%. Short-term correlations between traditional and digital assets resurfaced under the same pressure: heightened trade tensions amid a partially closed federal government. Analysts note that fluctuations in global commodities markets and the dollar index also contributed to the synchronized pullback.
Wall Street Reacts To Trade Tension
Trump indicated that a “massive” increase in tariffs is being considered, along with other countermeasures. Similar statements in April, during the “Liberation Day” tariffs, caused rapid drops in both cryptocurrencies and stocks. This time, market pressure triggered $459 million in liquidations in just one hour, forcing many traders to close positions.
Immediate reactions in traditional markets amplified the impact on digital assets. However, several crypto analysts note that the decline does not signal a structural breakdown. Adoption, liquidity, and infrastructure remain strong, supporting faster recoveries during politically driven volatility. Meanwhile, new derivatives products and institutional trading tools are helping mitigate risk, giving larger investors more flexibility during sharp downturns.
Crypto Outlook Remains Constructive
U.S. regulatory developments remain paused due to the partial government shutdown, although the Bureau of Labor Statistics confirmed it will release the September Consumer Price Index on October 24. Until full operations resume, macroeconomic signals will arrive less frequently, potentially increasing short-term volatility.
Despite the temporary bearish conditions, 45% of Myriad Markets participants predict Bitcoin will hit $140,000 before dropping to $110,000.
