Bitcoin’s price sharply declined to a new low below $106,000 following Donald Trump’s announcement of 500% tariffs on China, triggering panic selling and widespread liquidations in the crypto market.
What’s Behind Today’s Crash?
After weeks of sideways movement, Bitcoin’s price dropped below $106,000 today, sparking concern across global crypto markets. This decline follows last Friday’s dip to $104,000, once again tied to news around Donald Trump’s tariff policy.
The crash also pushed the Crypto Fear & Greed Index down to 22 — signaling “extreme fear” among investors.
Trump Threatens China with 500% Tariffs
The sharp drop was largely triggered by Donald Trump’s speech in which he accused China of “economic sabotage.” He sharply criticized trade and energy agreements between China and Russia, announcing 100% tariffs on all Chinese goods starting November 1, 2025.
Trump warned the tariffs could reach up to 500% if China doesn’t withdraw support for Russia’s energy sector — a measure reportedly backed by over 85 U.S. senators, according to Treasury Secretary Scott Bessent.
ETF Outflows Add to the Pressure
Additional pressure came from Bitcoin ETF products, which recorded some of their largest daily outflows to date. On October 16, total withdrawals reached $531 million.
For the first time ever, all major ETF issuers — including BlackRock, Grayscale, ARK Invest, and Fidelity — reported net outflows on the same day.
Analysts believe institutions are taking profits and reducing exposure in light of rising geopolitical risk.
Liquidations Accelerate the Sell-Off
The decline was further intensified by mass liquidations. Data from CoinGlass shows that crypto positions worth $961 million were liquidated in just 24 hours, impacting over 260,000 traders globally.
- Most of the liquidations were long positions — around $749 million
- This contributed to the breakdown below the critical $106,000 level
Market Enters Extreme Fear Mode
The Crypto Fear & Greed Index fell from 56 to 22 — a clear sign that panic and uncertainty dominate the market.
Meanwhile, reports emerged about a so-called “Trump Insider Whale” who opened a $127 million short position on Bitcoin just before Trump’s speech, fueling speculation of possible insider information.
Markets are now watching the $104,396 level hit last week. If breached, the next target could be the psychological threshold of $100,000.
Conclusion
Bitcoin’s drop below $106,000 is the result of a perfect storm of political statements, institutional moves, and investor psychology. Trump’s announcement of tariffs on China escalated global tensions, sparking a wave of panic selling, which was further intensified by liquidations and ETF outflows. Crypto investors are now in wait-and-see mode, with their eyes set on the crucial $104,000 support level.
Frequently Asked Questions
Find answers to the most common questions below.
The drop was triggered by Trump’s tariff threats, ETF outflows, and mass liquidations, driving extreme fear in the market.
The index has dropped to 22, signaling extreme fear and high investor uncertainty.
Traders are watching the $104,396 level closely. If broken, the next target could be the psychological $100,000 mark.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
