Bitcoin suffers worst crash this year
Cryptocurrency markets were thrown into turmoil late Friday. Bitcoin ($BTC) crashed from Over $120,000 to Lows around $111,000billions in market value disappear within hours. traces of sudden fall Biggest single-day decline in 2025BTC is falling 7% or more in 24 hours and causes a widespread decline in all major altcoins.
catalyst? This is President Trump.
this shock announcement Global markets were in turmoil and investors fled risky assets, including cryptocurrencies, in a classic risk-off move.
Chart analysis: free fall from major support
As shown in the figure below, BTCUSD collapses below multiple key levels With one candle:
- lost support in $118,600turning it into resistance.
- fell 50-day SMA (~$114,500)indicating a sudden change in momentum.
- touched lightly $111,350just above a nearby critical support cluster $110,000 — Last defense before the game 200 day SMA (~$106,600).
BTC/USD 1 day chart – TradingView
The daily candle is huge red swallow barwe observed intense selling pressure and panic liquidations across exchanges. This structure is similar Previous macro breakdownHowever, this speed and scale Worst single-day Bitcoin correction in 2025 so far.
If we break out of the $111,000-$110,000 zone, the next downside target is nearby. $106,000 (200 day SMA) and $100,000 in emotional support.
Entire market: Over $400 billion wiped out
The broader crypto market mirrored Bitcoin’s collapse. According to market capitalization data (attached table), the virtual currency market is fell more than 10%rush in from around $4.1 trillion to over $3.6 trillion before attempting a slight rebound.
- Every major sector, from DeFi to Layer 2 to AI tokens, was hit hard.
- Ethereum (ETH) It was less than $4,000.
- BNB, soland XRP Both were double-digit decreases.
- Even the top performers in the early days of Uptober ZEC and Tao I gave up the majority of my weekly profits.
Total cryptocurrency market capitalization in the past few hours – TradingView
The sudden liquidity crunch caused funding rates to turn negative and add to the downward momentum, resulting in the liquidation of several leveraged traders.
Why was the tariff news such a big shock?
Trump’s 100% Chinese customs policyeffective from November 1st, global trade warThis is exactly the macro situation that scares crypto investors, threatening supply chains, inflation control, and economic stability.
Bitcoin is often Preventing geopolitical turmoilthis move suggests that traders are prioritizing cash and stability Exposure to excessive risk. Immediate reactions across futures and spot markets indicate that financial institutions are reducing exposure until macro transparency returns. It is also worth noting that all markets, not just cryptocurrencies, have crashed.
What’s next for Bitcoin?
Analysts believe there are two possible paths in the short term:
1.Quick recovery (V-shaped bounce)
If you own Bitcoin $111,000 – $110,000+ And when the purchase amount returns, $118,000-$120,000 Retest It can happen within a few days. That would confirm that this is a panic dip rather than a complete reversal.
2. Extended fix
As panic continues and macro pressures increase, BTC could fall from $106,000 to $100,000tests the long-term moving average before stabilizing.
Traders will be watching to see if this tariff-driven sell-off turns into a major sell-off, given that uptobers have historically led to bullish trends. short-term buying opportunity or Beginning of broader risk-off phase.
