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Bitcoin plunged 12% after Trump announced new tariffs on imports from China.
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The cryptocurrency market saw $19 billion in liquidations during the panic sell-off.
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Analysts predict a strong rebound could be possible this week.
Bitcoin suffered a sharp decline on Friday, tumbling more than 12% after President Trump announced a 100% tariff on imports from China, sparking fears of a renewed trade war.
The announcement sent shockwaves through the crypto market, wiping out over $19 billion in liquidations and triggering panic selling among millions of traders.
Bitcoin briefly dipped below $105,000 before staging a modest recovery.
The sell-off reflected broader market anxiety as investors moved toward safer assets amid rising US-China tensions and uncertainty about economic stability.
Despite the heightened uncertainty, some experts urged calm and reminded investors to consider Bitcoin’s underlying fundamentals.
Why Bitcoin Could Rally Strongly This Week
According to economist Timothy Peterson, cited by CryptoNews, Bitcoin could mount a significant rebound this week, potentially rising as much as 21%.
Looking at historical data going back to 2013, Peterson notes that October is actually Bitcoin’s second-best month on average, with average gains of 20.1%, trailing only November.
Large October sell-offs are relatively rare: over the past decade they have occurred only four times, and three of those instances were followed by sharp recoveries.
Although Bitcoin recently fell below $102,000 after President Trump’s tariff announcement, Peterson remains optimistic.
He points out that roughly half of October’s typical gains may already be reflected in prices, but the remainder of the month still appears favorable for a strong rebound.
Based on Bitcoin’s typical liquidity and market sentiment cycles, analysts expect the asset to regain momentum by month’s end and potentially challenge key resistance levels in the coming weeks.
Why Recent Crashes Are Not Unusual
Volatility is part of life in the crypto world. Digital assets respond not only to economic headlines but also to social media chatter, regulatory news, and technological developments.
Experts say that while these swings carry risk, they also create opportunities for traders and investors who know how to navigate them.
Historically, October has often been a turbulent month for cryptocurrencies, but after the market finds its footing, steep declines are frequently followed by substantial rebounds.
Bottom line: the crypto sector is fast-moving and unpredictable. It carries high risk, but it can also offer significant returns.
Several factors contribute to heightened volatility. First, the market is still relatively young, so price discovery remains active and new investors and speculative trades can cause large moves.
Unlike traditional financial markets, cryptocurrencies are less regulated in many jurisdictions, so announcements of new policies or legal actions can provoke sharp reactions.
Finally, the market operates 24/7, which can amplify moves since there are no fixed trading hours or circuit breakers to pause trading and cool sentiment.