-
Bitcoin plunged 12% after President Trump announced new tariffs on imports from China.
-
The crypto market recorded $19 billion in liquidations amid panic selling.
-
Analysts predict a possible strong rebound this week.
Bitcoin tumbled sharply on Friday, dropping by 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 crypto market, wiped out over $19 billion in leveraged positions, and triggered panic selling among millions of traders.
Bitcoin briefly fell below $105,000 before staging a modest recovery.
The sell-off reflected broader market anxiety as investors rushed to safer assets amid rising tensions between the U.S. and China and uncertainty about economic stability.
Despite the deep uncertainty, some experts urge calm and ask investors to keep faith in the fundamentals of the flagship cryptocurrency.
Why Bitcoin Could Stage a Big Rebound 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 back to 2013, he notes October has actually been the second-best month for Bitcoin, with an average gain of 20.1%, second only to November.
Large October declines are relatively rare; over the past decade they have occurred only four times, and three of those instances were followed by rapid recoveries.
Even after Bitcoin recently dipped below $102,000 following the tariff announcement, Peterson remains optimistic.
He points out that roughly half of the typical October gains may already be recorded, but the rest of the month still appears favorable for a solid rebound.
Based on typical liquidity cycles and market sentiment patterns, analysts hope the month could end with Bitcoin regaining momentum and potentially breaking key resistance levels in the coming weeks.
Why the Recent Drop Is Not Unusual
Volatility is part of life in the crypto world. Digital assets do not respond solely to economic headlines; they are highly sensitive to social media narratives, regulatory news, and technological developments.
Experts say that although these swings can be risky, they also create opportunities for traders and investors who understand how to navigate the waves.
Historically, October has often been a bumpy month for cryptocurrencies, but steep declines are frequently followed by strong recoveries as the market finds a new balance.
In summary: the crypto space moves quickly and unpredictably, carrying significant risks but also potentially large rewards.
Several factors drive this heightened volatility. First, the market is still relatively young, so price discovery is ongoing; new investors and speculative trading can dramatically shift prices.
Unlike traditional financial markets, cryptocurrencies remain less regulated, making them more reactive to policy announcements and legal developments.
Finally, crypto markets operate 24 hours a day, seven days a week, which only intensifies volatility—there are no regular breaks or circuit breakers to calm rapid moves.