Escalation of the US‑China trade war
On Saturday, Bitcoin sank as much as 8.4 % to around $104,782 after former U.S. president Donald Trump unleashed a volley of trade threats against China. In a series of posts on his social‑media platform Truth Social, Trump vowed to slap 100 % tariffs on Chinese technology exports and to impose export controls on critical software, accusing Beijing of using its monopoly over rare‑earth minerals to gain economic leverage. These comments came amid renewed friction between Washington and Beijing over trade, chips and national security.
The tougher stance rattled global markets. In equities, the S&P 500 Index fell more than 2 % on Friday. In cryptocurrencies, the sell‑off was severe. Market data show that more than 1.6 million traders were liquidated over a 24‑hour period as stop‑loss orders were triggered en masse, and roughly $7 billion in leveraged positions were wiped out within an hour. Brian Strugats, head trader at Multicoin Capital, warned that total liquidations could exceed $30 billion, raising the risk of counter‑party defaults and contagion into other asset classes.
Broad‑based crypto sell‑off
Bitcoin’s plunge dragged the wider market lower. Ethereum slid about 5.8 % to near $3,637, Binance Coin shed 6.6 % to around $1,094, and XRP dropped a hefty 22.85 %, cutting its market capitalisation by more than 16 %. Stablecoin Tether edged down 0.1 % but held its dollar peg. The declines came even as the broader crypto market had been gathering momentum: according to CoinGecko’s market dashboard, the global crypto market cap stands near $3.995 trillion and 24‑hour volume around $269 billion. Bitcoin and Ethereum continue to dominate market share, commanding roughly 57.3 % and 12.5 % of capitalization respectively.
Despite the carnage, some analysts remain constructive. Edul Patel, co‑founder of Indian exchange Mudrex, noted that Bitcoin briefly dipped to roughly $102,000 before recovering above $113,000. He pointed out that October pullbacks often precede relief rallies, sometimes producing rebounds of up to 21 % as sidelined capital flows back into crypto. Patel suggested that ongoing U.S. regulatory developments — including anticipated approval of spot altcoin exchange‑traded funds (ETFs) — and capital rotation out of gold could provide fresh liquidity. For long‑term investors, he sees the sell‑off as a buying opportunity in blue‑chip assets like Bitcoin and Ethereum.
Context and outlook
Saturday’s price crash underscores digital assets’ sensitivity to geopolitical news. Unlike previous crypto‑specific shocks (such as exchange failures or hacks), this sell‑off was catalysed by macro‑economic headlines. It highlights how the asset class is maturing and becoming entwined with broader financial markets.
In India, interest in crypto remains high. The list of top‑trending cryptocurrencies among Indian users, updated on 13 October 2025, shows Bitcoin leading the pack, followed by Ethereum and newer layer‑1 and meme projects. While retail investors were rattled by this week’s volatility, many still view digital assets as a hedge against currency devaluation and political risk.
Looking ahead, market participants will watch for further escalations in the US‑China trade dispute and for regulatory signals from the U.S. Securities and Exchange Commission. Volatility is likely to stay elevated; however, if macro headwinds ease and ETF approvals arrive, the crypto market could stage a sharp rebound. As always, investors should manage risk carefully in such fast‑moving markets.
