Bitcoin News Today: Trade Wars Spark Bitcoin's Death Cross Plunge as Markets Brace for Macro Winter

Bitcoin's price plummeted below $75,000 in late October 2025 as escalating U.S.-China trade tensions triggered a wave of panic selling across global markets. The cryptocurrency, which had surged past $125,000 earlier in the year amid optimism over Federal Reserve rate cuts and institutional adoption, faced a sharp reversal following President Donald Trump's imposition of a 104% tariff on Chinese imports. The move, coupled with retaliatory measures from Beijing, sent shockwaves through financial markets, wiping out nearly $2.3 billion in crypto liquidations within 24 hours .

The sell-off was exacerbated by a "death cross" technical pattern in Bitcoin's price chart, where the 50-day moving average crossed below the 200-day average-a bearish signal historically linked to prolonged downturns. Asian equities, including Japan's Nikkei 225, dropped nearly 4%, while U.S. indices like the S&P 500 and Nasdaq fell 1.6% and 2.1%, respectively MoneyCheck^[2]. Michael Saylor's Strategy, the largest listed Bitcoin holder, reported a $5.91 billion unrealized loss on its digital asset holdings, further fueling investor anxiety MoneyCheck^[2].

Trump's tariffs, which also targeted Canada and Mexico, were framed as a strategy to curb trade deficits and address drug trafficking. However, economists warned the policies risked inflating global prices, disrupting supply chains, and triggering a recession. "This isn't an exodus from crypto, but a macro-driven recalibration," said Thomas Perfumo of Kraken, highlighting the shift toward risk-off assets amid heightened uncertainty Fortune^[3].

The cryptocurrency market mirrored broader economic fears, with Ethereum dropping 7.4% to a two-year low of $1,459.95 and altcoins like XRP and Solana falling 3–7%. Over $400 million in leveraged long positions were liquidated in a single day, with short positions comprising 55% of open interest-a sign of deepening bearish sentiment MoneyCheck^[2].

Despite the turmoil, some analysts noted resilience in Bitcoin's long-term fundamentals. David Siemer of Wave Digital Assets attributed the earlier rally to institutional inflows via ETFs and the Fed's dovish pivot, but warned the current environment was "precarious." "Leveraged trading, not spot demand, is at least partially driving this move," he said Forbes^[1].

The Federal Reserve's policy trajectory remains a critical factor. While tariffs could complicate inflation control and delay rate cuts, experts like Jasper De Maere of Wintermute argued that crypto's correlation with traditional markets would persist. "Bitcoin historically follows gold's lead, with Q4 often its strongest quarter," he noted Forbes^[1].

As of late October 2025, Bitcoin traded at $74,589.67, with markets bracing for further volatility. The White House had paused most tariffs for 90 days, excluding China, offering a glimmer of hope. However, with geopolitical tensions and monetary policy uncertainty persisting, the crypto market's path remains fraught with risks.