Crypto Slide Continues Amid Trade War Concerns
- Cryptocurrency prices continue to drop following record liquidations over the weekend.
- This downturn began on October 10,2025,when President Donald Trump announced plans for 100% tariffs on products from China.
- While digital asset markets saw a brief recovery on Monday (Oct.
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cryptocurrency Market Downturn: A Response to US-china Trade Tensions
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What Happened: The Crypto Price drop
Cryptocurrency prices continue to drop following record liquidations over the weekend. The price of bitcoin, the most popular digital asset, fell as much as 2.9% to about $112,500 on Tuesday (Oct. 14) morning in London, according to Bloomberg News reported. the price of ether dipped more than 5% to $4,000.
This downturn began on October 10,2025,when President Donald Trump announced plans for 100% tariffs on products from China. This proclamation triggered record liquidations of approximately $19 billion in crypto positions.
While digital asset markets saw a brief recovery on Monday (Oct. 13), most major crypto tokens have resumed their decline. investors withdrew $756 million from U.S. bitcoin and ether exchange-traded funds (ETFs) on Monday.
The Role of US-China Trade Tensions
The immediate catalyst for the crypto downturn appears to be escalating trade tensions between the United states and China. China’s response to the proposed 100% tariffs – instituting new limits on the American units of Hanwha Ocean Co., a major South Korean shipbuilder - has created broader economic uncertainty. This uncertainty spills over into risk assets like cryptocurrencies.
What Does This Mean for the Crypto Market?
The current market behavior suggests a shift towards risk aversion. The considerable liquidations indicate a panicked exit by some investors, while the outflow from ETFs demonstrates a broader loss of confidence. Analytics firm Glassnode noted that “The market now enters a consolidation phase,one defined by renewed caution,selective risk-taking,and a more measured