Market Turmoil Triggered by New Tariff Threats

The cryptocurrency sector experienced a significant downturn, with total market capitalization plunging below the crucial $120,000 threshold within a single day. This sharp decline followed a statement from former US President Donald Trump, who announced plans to impose a 100% tariff on Chinese imports starting November 1. In a post on his social media platform, Trump characterized Beijing as aggressively hostile, accusing China of attempting to dominate global supply chains by notifying multiple countries about forthcoming export restrictions on key manufacturing components.

Bitcoin and Major Altcoins Suffer Substantial Losses

Before the tariff announcement, Bitcoin (BTC) had recently reached an all-time peak, trading near $121,300. However, the market swiftly reversed course, with BTC dropping below $120,000 and hitting a low of approximately $109,000 on Binance. Ethereum (ETH) also declined sharply, falling under $3,500, while Solana (SOL) dipped below $150.

Within less than an hour, Bitcoin’s value decreased by over $10,000, briefly falling beneath $114,000 before the sell-off intensified. This rapid downturn erased more than $250 billion from the overall cryptocurrency market cap, marking one of the most significant single-day losses recorded in 2025.

At the time of reporting, Bitcoin was trading around $112,296, reflecting a 7.91% drop, while Ethereum was priced near $3,816, down 12.52%.

Massive Liquidations Shake the Crypto Landscape

The tariff announcement triggered a cascade of liquidations across the crypto market. Within just one hour, over $7.5 billion worth of leveraged positions were forcibly closed. Data from Coinglass on October 1 revealed Bitcoin led the liquidation volume with $5.39 billion, followed by Ethereum at $4.45 billion. Solana and XRP liquidations reached $2.02 billion and $710 million, respectively.

Over the past 24 hours, more than 1.67 million traders faced liquidation, totaling $19.38 billion in closed positions. The largest single liquidation was a Hyperliquid ETH-USDT contract valued at $203.36 million.

Institutional Investors Maintain Confidence Amid Volatility

Despite the market upheaval, institutional interest in Bitcoin remains robust. Analytics from Glassnode indicate that inflows of Bitcoin from institutional sources have persisted even during the recent price correction. This suggests that long-term investors continue to accumulate BTC, providing a stabilizing force amid the heightened volatility caused by derivatives traders’ losses.

Such structural buying activity is crucial in absorbing market shocks and supporting price resilience during turbulent periods.

Summary of Key Developments

• Bitcoin’s price fell below $120,000, reaching lows near $109,000 on some platforms.
• Over $19 billion in crypto positions were liquidated within 24 hours, with $7.5 billion occurring in just one hour.
• Ethereum and Solana experienced steep price declines alongside Bitcoin.
• Institutional investors continue to show strong demand for Bitcoin despite market volatility.