-
Bitcoin plunged 12% after Trump announced new Chinese tariffs.
-
The cryptocurrency market saw $19 billion in liquidations amid panic selling.
-
Analysts foresee a possible strong rebound this week.
On Friday, Bitcoin suffered a sharp drop, falling over 12% after President Trump announced a 100% tariff on Chinese imports, sparking fears of a renewed trade war.
The announcement sent shockwaves through the crypto market, wiping out more than $19 billion in liquidations and triggering panic selling among millions of traders.
Bitcoin briefly dipped below $105,000 before recovering slightly.
This collapse reflected broader market fears, as investors rushed toward perceived safe-haven assets amid growing uncertainty over escalating U.S.-China tensions and economic stability.
Despite the deep uncertainty, some experts urged calm and asked investors to keep faith in the fundamentals of the leading cryptocurrency.
Why Bitcoin Could See a Big Bounce This Week
According to Cryptonews.com, economist Timothy Peterson believes there is a strong chance Bitcoin could rebound sharply this week, potentially jumping as much as 21%.
Looking at historical data since 2013, Peterson notes that October has actually been the second-best month for Bitcoin, with an average gain of 20.1%, just behind November.
Large declines in October are relatively rare; they have occurred only four times in the past decade, and three of those instances were followed by sharp recoveries.
Even though Bitcoin recently fell below $102,000 after President Trump’s tariff announcement, Peterson remains optimistic.
He points out that roughly half of the usual October gains may already be in the books, but the remainder of the month still looks conducive to a solid rebound.
Based on typical liquidity cycles and Bitcoin market sentiment, analysts hope the month could end with Bitcoin regaining momentum and possibly overcoming key resistance levels in the coming weeks.
Why the Recent Crash Is Not Unusual
Volatility is simply part of life in the cryptocurrency world. Digital assets don’t respond only to economic headlines; they are highly sensitive to social media chatter, regulatory news, and technological developments as well.
Experts say that while these ups and downs can be risky, they also create opportunities for traders and investors who know how to ride the waves.
Historically, October tends to be a turbulent month for cryptocurrencies, but these declines are often followed by strong rebounds as the market rebalances.
In conclusion: the crypto space is fast-moving and unpredictable, presenting significant risks but also potentially large rewards.
Several factors contribute to this heightened volatility. First, the market is still relatively young, so price discovery remains ongoing; new investors and speculative trades can swing prices sharply.
Unlike traditional financial markets, cryptocurrencies are less regulated, so announcements of new policies or legal actions can trigger abrupt reactions.
Finally, crypto markets operate 24/7, which can amplify volatility—there are no trading breaks or circuit breakers to cool things down.