The cryptocurrency market, including Bitcoin—the world’s largest token—experienced a decline for the second consecutive day on October 12. This downturn followed a significant crash triggered by United States President Donald Trump’s announcement of an additional 100 percent tariff on Chinese goods. As a result, the total market capitalization of cryptocurrencies fell to $3.7 trillion, down from a record high of $4 trillion just a week earlier. Trading volume currently stands at $250.02 billion, according to CoinMarketCap.
A comprehensive analysis from CoinMarketCap attributes the market’s decline to several factors. The broader crypto market dropped by 0.89 percent over the past 24 hours, marking an 11.5 percent decline over the last week. The announcement by Trump, which included heightened tariffs and restrictions on U.S. software exports to China, sent ripples of uncertainty through both equity and cryptocurrency markets. This geopolitical shock raised fears of a potential trade war if China decides to retaliate.
Following Trump’s tariff announcement, the crypto market witnessed its largest liquidation event to date, with an estimated $19 billion wiped out on October 11. In the face of this volatility, investors turned to traditional safe-haven assets such as gold and silver. The atmosphere prompted many traders to exit high-risk positions, as reflected by an 18 percent drop in open interest, indicating a significant shift in market sentiment.
Market experts described the situation as a “combination of macro shockwaves and extreme leverage,” highlighting that the recent events led to the worst single day for cryptocurrency since the first quarter of 2025. Traders are now closely observing Bitcoin’s critical support level at $110,000, as well as the potential for resumed inflows from exchange-traded funds (ETFs) after the recent selloff.
As for the current cryptocurrency prices, Bitcoin was trading at $111,122.51, down 1 percent in the last 24 hours and 10.38 percent over the past week. Its market capitalization decreased by nearly 0.90 percent, now sitting at $2.22 trillion, while trading volumes plummeted by 45.84 percent to $94.71 billion. Ethereum, the second-largest cryptocurrency, was priced at $3,798, down 0.39 percent from the previous day, with a market cap of $458.43 billion and trading volume declining by 50 percent to $54.44 billion.
