Why Did the Crypto Market Plummet This Week?

[Suba]

Observing the crypto market last week, it appears there were major shocks rocking the market, ranging from US President Donald Trump's announcement to China's import tariff policy. On October 10, 2025, the crypto market plummeted, losing hundreds of billions of dollars. The price of BTC briefly dropped below $110,000. On October 12, 2025, altcoins such as Ether, Sol, and XRP fell by up to 30%. According to Yahoo, the price of BTC opened at around $124,000 on October 7, 2025.

In addition to geopolitics, which considers trade tariffs a black swan event, there is also excessive leverage in long positions, which, when prices drop, forces liquidation.

 

[Augusta]

The plunge came after U.S. President Donald Trump announced late on Friday a 100% tariff on Chinese imports and threatened export controls on critical software.