Bitcoin Falls to $104K, Ethereum Below $3.7K: Crypto Market Crashes Amid Global Uncertainty

The crypto market declined following Trump's comments on imposing 100% tariffs on Chinese imports, with total market capitalization falling 4.67% to $3.61 trillion. Bitcoin traded near $104,900, down 5.3% in 24 hours and 12.18% over the week. Ethereum slipped below $3,700, while Solana and Cardano declined between 7% and 9%. Gold prices continued their record-breaking climb, surging 3% to $4,380 per ounce. Analysts attribute the rally to renewed safe-haven buying and expectations of Federal Reserve rate cuts.

The crypto market experienced significant volatility following U.S. President Donald Trump's comments on imposing 100% tariffs on Chinese imports. This announcement triggered a sharp decline in the market, with the total market capitalization falling by 4.67% to $3.61 trillion, according to a Coin Republic report.

Bitcoin, the leading cryptocurrency, was particularly hard hit. It traded near $104,900, down 5.3% in 24 hours and 12.18% over the week. Ethereum slipped below $3,700, while Solana and Cardano declined between 7% and 9%. Gold prices continued their record-breaking climb, surging 3% to $4,380 per ounce. Analysts attribute the rally to renewed safe-haven buying and expectations of Federal Reserve rate cuts, according to a ts2.tech forecast.

The U.S.-China trade tensions have been a significant driver of market volatility. President Trump's threat of 100% tariffs on Chinese goods sent shockwaves through the crypto market. The Crypto Market Fear & Greed Index fell from 64 (greed) to 22 (extreme fear) in just a week, reflecting the heightened uncertainty among investors, The Coin Republic reported.

The market's reaction was swift and dramatic. Bitcoin and the broader crypto market crashed due to renewed U.S.-China trade tensions, miner selloffs, and spot ETF liquidations. Concerns over U.S. credit, bank loan losses, and the government shutdown were driving investors toward Treasurys and gold, according to The Coin Republic.

The volatility extended to the stock market as well. The U.S. stock markets erased losses to make a V-shape recovery, but the impact of the tariff announcement was significant. The crypto market, however, rebounded after President Trump confirmed that high tariffs on China will "not" remain. He also announced a meeting with China’s President Xi Jinping in two weeks, adding that current tariffs on Chinese goods are not sustainable, The Coin Republic reported.

The crypto market's fear turned to relief as the market rebounded. Bitcoin price jumped from a low of $103,598.43 after Trump’s statement fueled positive sentiment. The BTC price was trading at $105,224, still more than 5% down at the time of writing. The trading volume has increased by 56% in the last 24 hours, indicating a rise in interest among traders, The Coin Republic reported.

The derivatives market showed mixed reactions in the last few hours, with the total BTC futures open interest (OI) change being down in the past hour, 4-hour, and 24-hour periods. However, BTC futures OI on Binance climbed by more than 1.18% in the last hour and 0.55% in the past 4 hours, The Coin Republic reported.

In the short term, analysts are divided on the outlook for Ethereum. The current price of Ethereum is around $4,100, with analysts expecting a trading range of $3,800–$4,600 for October-December 2025. Some models see buying opportunities at $4,375, while others predict a swing between $3,816 and $4,599 in October, the ts2.tech forecast found.

The market remains volatile, with the recent U.S.-China tariff escalation and Federal Reserve rate cuts adding to the uncertainty. Traders are closely watching for other risks, such as crypto options expiry and macro events, amid the prolonged government shutdown.