Key Highlights
- Bitcoin open interest keeps increasing, and funding is decreasing
- The crash was directly triggered by a sudden escalation in the U.S.-China trade war, which caused panic and made investors sell risky assets like Bitcoin
- The crash was directly triggered by a sudden escalation after U.S. President Trump announced tariffs on China
As the cryptocurrency market is going through a historic fall with catastrophic events, there is another bad news for traders. According to Tradingview, Bitcoin’s Open interest is climbing shorts are losing ground.
(Source: coinalyze.net)
After U.S. President Donald Trump raised warnings of a trade war against China, the cryptocurrency market suffered a massive crash. In the massive liquidation, over $19 billion in funds were wiped out from the cryptocurrency market.
Bitcoin Sees Massive Fall After Trump Declares Trade War Against China
Due to this, Bitcoin crashed below $106,000 last week. However, U.S. President Trump announced that he will not impose taxes on goods from China. These taxes were planned to start soon. This is good news because taxes between countries can hurt trade and make investors nervous.
When the news came out, the price of Bitcoin immediately started to rise. It had been at a low price for several weeks, but this positive news pushed its value upward.
In less than a week, Trump has changed his statement for the fourth time. Just a few days ago, the situation was the opposite. President Trump had threatened China with three new taxes. This caused a lot of worry in the financial markets, especially for cryptocurrencies.
As a result, the price of Bitcoin fell very quickly and sharply. In just minutes, it lost a lot of its value. The drop was so fast that it caused even more people to sell, making the price fall even further.
Now, it seems the problem was a big misunderstanding between the US and China. With the President’s new statement, the tension is decreasing, and the market is reacting positively.
The price of Bitcoin is falling because US President Donald Trump has given confusing statements about his plan for new taxes on China. This uncertainty is making investors nervous.
Because of the price drop, people who bought Bitcoin recently are starting to sell their coins. This increased selling is pushing the price down even further.
Traders See $103,000 Mark as Crucial Support Level
Experts are now closely watching the $103,000 price level. They believe this is an important support point. If it falls below this level, it could lead to a further decline.
There are other worries affecting the market. A top banker warned that more U.S. banks could fail, which has created general economic fear. This has caused investors to pull money out of risky assets like stocks and crypto.
Bitcoin is crashing hard in October 2025. Its price has fallen about 17% from a record high, losing over $600 billion from the entire crypto market in just one week. This is not normal market movement; it is a major reaction to economic fears and problems within the crypto system.
New, very high taxes on Chinese goods and China’s retaliation caused global panic. Bitcoin’s price fell 14% in a single day. Because this happened on a weekend when trading was slow, the crash was even more severe.
The main reason for the crash is a shift in the global economy toward safer investments. Instead of acting as a “global gold” safe haven, Bitcoin behaved like a risky tech stock and fell sharply.
Global tensions are making investors fearful, so they are selling risk assets like Bitcoin and moving to crash to gold. The ongoing shutdown is creating economic uncertainty and fears of a recession. Persistent inflation means the central bank may keep interest rates high, making traditional investments more attractive than Bitcoin.
A record amount of leveraged trades were automatically closed, forcing more selling. There are also suspicions that some large traders coordinated to exploit market weaknesses and profit from the drop.