The global cryptocurrency market continued its downward slide on October 12, marking the second consecutive day of declines. The sell-off followed U.S. President Donald Trump’s announcement of additional 100% tariffs on China, a move that rattled financial markets and sent investors fleeing to traditional safe haven assets.
As risk appetite faded, Bitcoin and Ethereum, the two largest digital assets by market capitalization, slipped deeper into the red, reflecting broader investor unease.
A Market in Retreat: Numbers Tell the Story
According to data from CoinMarketCap, the total cryptocurrency market capitalization fell to $3.7 trillion, down sharply from last week’s record high of $4 trillion. Trading volumes also took a hit, dropping to $250.02 billion as investors remained cautious.
At 11:11 a.m. (UTC), the major cryptocurrencies stood as follows:
- Bitcoin (BTC): $111,660.41
- Ethereum (ETH): $3,817.26
- Tether (USDT): $1.00
- Binance Coin (BNB): $1,140.34
- XRP: $2.37
The overall crypto market slipped 0.89% over the past 24 hours, extending a seven-day decline of 11.5%—one of the steepest weekly drops of 2025.
Why the Decline? Tariff Shock and Trade War Fears
Analysts attribute the downturn to a mix of geopolitical and macroeconomic shocks triggered by the new U.S.-China tariff measures. Trump’s announcement of 100% tariffs and additional restrictions on software exports heightened fears of a renewed trade war, prompting a global sell-off across both equity and crypto markets.
The move led to $19 billion worth of crypto liquidations on October 11, marking the largest single-day wipeout since the first quarter of 2025. In parallel, gold and silver prices surged, reflecting investors’ growing preference for stability over speculation.
Traders Turn Defensive: Risk Appetite Shrinks
Open interest in crypto futures contracts reportedly fell 18%, signaling that traders are unwinding leveraged positions amid rising uncertainty. Analysts describe the sell-off as a “combination of macro shockwaves and extreme leverage,” resulting in the sharpest downturn of the year so far.
Market watchers are now focusing on key technical levels — particularly Bitcoin’s $110,000 support zone. A sustained break below this level could trigger deeper corrections unless ETF inflows revive confidence and liquidity in the market.
Bitcoin and Ethereum Price Overview
- Bitcoin (BTC) was trading at $111,122.51, down 1% over the past 24 hours and 10.38% over the week. Its market capitalization stood at $2.22 trillion, while trading volume fell 45.84% to $94.71 billion.
- Ethereum (ETH) followed a similar trend, trading at $3,798, down 0.39% from the previous day. Its market capitalization dropped to $458.43 billion, with a 50% decline in 24-hour trading volume to $54.44 billion.
These numbers highlight a broader retreat across the crypto ecosystem, as both institutional and retail investors brace for further volatility.
