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Bitcoin plunged 12% after President Trump announced new tariffs on China.
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The crypto market saw $19 billion in liquidations amid the panic sell-off.
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Analysts predict a possible strong rebound this week.
Bitcoin tumbled sharply on Friday, dropping more than 12% after President Trump announced a 100% tariff on Chinese imports, sparking fears of a renewed trade war.
The announcement sent shockwaves through the cryptocurrency 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 rebound.
The plunge reflected broader market anxiety as investors rushed toward safer assets amid growing concern over escalating tensions between the U.S. and China and the potential impact on economic stability.
Yet, in the face of deep uncertainty, some experts remain calm and urge investors to keep faith in Bitcoin’s fundamentals.
Why Bitcoin could rally strongly this week
According to Cryptonews.com, economist Timothy Peterson believes there’s a solid chance Bitcoin could mount a strong comeback this week, potentially climbing as much as 21%.
Reviewing historical data back to 2013, Peterson notes that October has actually been Bitcoin’s second-best month on average, with mean gains of 20.1%, second only to November.
Large declines in October are relatively uncommon — they’ve occurred only four times in the past decade, and three of those drops were followed by significant recoveries.
Even though Bitcoin recently slipped below $102,000 after the tariff announcement, Peterson remains optimistic.
He points out that roughly half of October’s typical gains may already be in place, but the remainder of the month still looks favorable for a meaningful advance.
Based on Bitcoin’s historical patterns of liquidity flows and market sentiment, analysts hope the month could finish with Bitcoin regaining momentum and potentially breaking through key resistance levels in the coming weeks.
Why the recent crash isn’t unusual
Volatility is intrinsic to the crypto world. Digital assets don’t just react to macroeconomic headlines; they are also highly sensitive to social media chatter, regulatory developments, and technological changes.
Experts say these sharp ups and downs are risky, but they also create opportunities for traders and investors who understand how to navigate the waves.
Historically, October tends to be a bumpy month for cryptocurrencies, yet declines during this period are often followed by strong rallies as the market finds equilibrium.
The bottom line: the crypto space moves quickly and unpredictably, presenting significant risks alongside potentially substantial rewards.
Several factors contribute to this elevated volatility. First, the market is still relatively young, so price discovery is ongoing; new participants and speculative flows can swing prices dramatically.
Unlike traditional financial markets, crypto remains less regulated in many jurisdictions, meaning policy announcements or legal actions can provoke sharp market responses.
Finally, crypto markets operate 24/7, which amplifies price moves — there are no trading halts or market close windows to provide natural cooling-off periods.