Bitcoin (BTC) and the wider cryptocurrency market plunged into the red after President Donald Trump imposed a 100% tariff on China on top of the existing 30%, triggering a marketwide selloff and leaving investors reeling. The decision came after China announced restrictions on rare earth minerals, crucial for technology and manufacturing. BTC plunged as low as $104,000 on some exchanges, with the drop liquidating $6 billion in positions in one hour. The reversal has significantly impacted investor sentiment and market optimism. Bitcoin Traders Must Brace For Volatility Swan Bitcoin CEO Cory Klippsten believes Bitcoin could face substantial volatility as trade tensions between the US and China escalated dramatically. Trump announced 100% tariffs on Chinese imports after the latter announced restrictions on rare earth minerals. “If the broader risk-off mood holds, Bitcoin can get dragged around a bit before it finds support and starts to decouple again.” Klippsten added that Bitcoin traders should expect volatility over the next few days as leveraged traders will get flushed out. “Macro-driven dips like this usually wash out leveraged traders and weak hands, then reset positioning for the next leg up.” Over 2.19 billion in Bitcoin long positions were wiped out over the past 24 hours, adding to a total of over $8 billion in liquidations across the crypto market. “We’ve got a little panic in the markets right now, classic macro whiplash. Trump and China are trading tariff threats, equities are off, and traders are scrambling to derisk.” Despite the market bloodbath, Bitcoin analysts remain optimistic and believe the latest price drop presents a buying opportunity. Bitwise Invest strategist Juan Leon stated, “The best time to buy BTC has tended to be when it is being dragged down by broader markets.” Morgan Stanley Drops Restrictions On Crypto Morgan Stanley is reportedly expanding its crypto offerings to allow all its clients to access digital assets. According to reports, the bank will allow customers to trade Bitcoin, Ethereum, and Solana via its eTrade platform. Advisors will be able to offer customers crypto fund investments, including those with retirement accounts. Previously, only the bank’s high-net-worth clients could invest in crypto. Morgan Stanley has slowly made inroads into the digital asset space. It began offering wealthy clients access to Bitcoin investment funds in 2021 and allowed financial advisors to promote Bitcoin ETFs to clients in 2024. This year, Morgan Stanley CEO and Chairman Ted Pick stated in an interview that the bank will work with regulators to offer clients access to crypto. “For us, the equation is really around whether we, as a highly regulated financial institution, can act as transactors.” The bank also confirmed a partnership with crypto and stablecoin infrastructure fund Zerohash to allow customers to trade Bitcoin, Ethereum, and Solana. Bitcoin (BTC) Price Analysis Bitcoin (BTC) fell as the broader cryptocurrency market endured a bloodbath after President Trump imposed 100% tariffs on China in a dramatic escalation of the trade war between the two countries. Trump also imposed import controls on “any critical software” after China announced export restrictions on rare earth minerals critical to tech and other manufacturing. Markets went into turmoil following the announcement, with Bitcoin, Ethereum, Solana, and other cryptocurrencies plunging deep into the red. BTC fell as low as $102,000 on Binance before recovering and closing the day at $112,980. President Trump stated on Truth Social, “It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1, 2025, impose large-scale Export Controls on virtually every product they make.” BTC plunged shortly after the announcement, with analysts worried about a plunge below $100,000. The price stabilized around $102,000, its lowest level since June. Meanwhile, data from CoinGlass revealed that over $9.4 billion in crypto market positions were liquidated in the past 24 hours, with $7.15 billion being leveraged long positions. Ravi Doshi, co-head of markets at FalconX, stated, “A renewed trade war between China and the US erupted on Friday, causing uncertainty in markets and a rout in risk assets.” Rare earth elements are crucial for semiconductor production. China’s threat to tighten access to critical materials could strain global supply chains for AI, high-performance computing, and crypto mining infrastructure. The market crash has wiped out “Uptober” euphoria, with the crypto market cap shedding nearly 10% in 24 hours. October has historically been one of the strongest months for Bitcoin and the broader cryptocurrency market, a pattern that has led the industry to expect strong gains every fall. BTC started the previous weekend with a marginal drop on Saturday before rising by over 2% on Sunday and settling at $112,197. Buyers retained control on Monday as the price rose almost 2% to cross $114,000 and settle at $114,365. Despite the positive sentiment, BTC fell to a low of $112,695 on Tuesday. However, it recovered from this level to settle at $114,067, ultimately registering a marginal decline. Bullish sentiment returned on Wednesday as BTC rallied, rising over 4% to cross $118,000 and settle at $118,659. Buyers retained control on Thursday as the price rose 1.65% to reclaim $120,000 and settle at $120,621. Bullish sentiment persisted on Friday despite volatility and selling pressure. As a result, BTC reached an intraday high of $123,996 before settling at $122,318. Source: TradingView Buyers retained control on Saturday as BTC registered a marginal increase and settled at $122,458. Bullish sentiment intensified on Saturday as BTC rallied, surging past $125,000 to a new all-time high of $125,559. However, it could not stay at this level and ultimately settled at $123,520. BTC surged to a new all-time high on Monday, crossing $126,000 to reach $126,296 before settling at $124,720. Despite strong bullish momentum, BTC retreated on Tuesday, falling nearly 3% and settling at $121,393. The price recovered on Wednesday, rising almost 2% to reclaim $123,000 and settle at $123,343. Selling pressure intensified on Thursday as BTC fell to an intraday low of $119,713 before reclaiming $120,000 and settling at $121,714. Selling pressure intensified as President Trump imposed 100% tariffs on Chinese imports, decimating investor sentiment. As a result, BTC fell as low as $102,000 on Binance before closing the day at $112,980. The price is down over 1% during the ongoing session, trading around $111,869. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
