The crypto market was thrown into chaos late Friday as Bitcoin ($BTC) crashed from above $120,000 to a low near $111,000, wiping out billions in market value within hours. The sudden drop marks the steepest one-day decline of 2025, with BTC falling over 7% in 24 hours and triggering a wider sell-off across all major altcoins.
The catalyst? It’s President Trump.
This shock announcement rattled global markets, sending investors fleeing from risk assets — including crypto — in a classic risk-off move.
Chart Analysis: Freefall from Key Support
As shown in the below chart, BTCUSD collapsed below multiple key levels in a single candle:
- Lost support at $118,600, turning it into resistance.
- Fell through the 50-day SMA (~$114,500), signaling a sharp momentum shift.
- Briefly touched $111,350, just above a crucial support cluster near $110,000 — the last defense before the 200-day SMA (~$106,600).
BTC/USD 1-day chart – TradingView
The daily candle formed a massive red engulfing bar, confirming heavy selling pressure and panic liquidation across exchanges. This structure resembles previous macro breakdowns, though the speed and scale of this one make it stand out as the worst single-day Bitcoin correction in 2025 so far.
If the $111K–$110K zone breaks, the next downside targets lie near $106K (200-day SMA) and psychological $100K support.
Total Market: Over $400 Billion Wiped Out
The broader crypto market mirrored Bitcoin’s collapse. According to total market cap data (attached chart), the crypto market fell over 10%, plunging from around $4.1 trillion to just above $3.6 trillion before a slight rebound attempt.
- Every major sector — from DeFi to Layer 2s to AI tokens — was hit hard.
- Ethereum (ETH) dropped back below $4,000.
- BNB, SOL, and XRP all saw double-digit declines.
- Even top performers of early Uptober like ZEC and TAO gave up a large part of their weekly gains.
Total crypto market cap in the past hours – TradingView
The sudden liquidity crunch caused several leveraged traders to be liquidated as funding rates flipped negative, adding more downward momentum.
Why the Tariff News Hit So Hard
Trump’s 100% China tariff policy, effective November 1st, reignites fears of a global trade war, threatening supply chains, inflation control, and economic stability — the exact macro conditions that often spook crypto investors.
While Bitcoin has often been viewed as a hedge against geopolitical chaos, this time the move suggests traders are prioritizing cash and stability over risk exposure. The immediate reaction across futures and spot markets shows that institutions are reducing exposure until macro clarity returns. It is also worth noting that all markets crashed, not only cryptos.
Analysts see two possible short-term paths:
1. Quick Recovery (V-shape bounce)
If Bitcoin holds above $111K–$110K and buying volume returns, a retest of $118K–$120K could happen in the coming days. That would confirm this as a panic dip rather than a full reversal.
2. Extended Correction
If panic persists and macro pressure builds, BTC could drop toward $106K–$100K, testing long-term moving averages before stabilizing.
Given that Uptober historically brings bullish trends, traders are watching whether this tariff-driven crash becomes a short-term buying opportunity or the start of a broader risk-off phase.