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Bitcoin Falls 8% as U.S.–China Trade War Fears Shake Markets

bitcoin price

Date: October 11, 2025
Category: Bitcoin News / Crypto Market

Bitcoin faced a sharp decline on Friday, dropping by nearly 8.4% to around $104,782, as renewed U.S.–China trade war tensions rattled global financial and crypto markets. The sudden bitcoin fall triggered panic among short-term traders and raised questions about the cryptocurrency’s stability amid growing economic uncertainty.

Bitcoin Price Today: Sharp Drop Amid Global Tensions

According to major exchanges, the bitcoin price today continues to fluctuate between $104,000 and $106,000, following an overnight sell-off that erased nearly $90 billion from the global crypto market capitalization. Ethereum, Solana, and other top coins also saw similar corrections, with most altcoins falling between 5% and 9%.

Analysts suggest that the ongoing U.S.–China trade war concerns have pushed many investors toward safer assets such as gold and government bonds, resulting in reduced interest in volatile assets like Bitcoin.

Why Is Bitcoin Dropping?

Experts believe the bitcoin drop is linked to macroeconomic factors rather than crypto-specific issues. The trade war escalation—marked by new U.S. tariffs on Chinese tech imports and Beijing’s countermeasures—has fueled global risk aversion.

“Bitcoin’s price decline isn’t about crypto fundamentals—it’s about global fear,” said Alex Reinhart, a senior market analyst at Coin Global Research. “Whenever economic uncertainty spikes, investors tend to pull back from high-risk assets, and crypto feels that impact first.”

Crypto Market Reaction

The broader crypto market showed heavy volatility after the news broke. Total crypto market cap slipped below $2.1 trillion, with major coins like Ethereum (ETH) and BNB also registering sharp declines.

Meanwhile, crypto exchanges reported an increase in trading volume, as both institutional and retail investors reacted to the sudden price movement.

Is This a Temporary Bitcoin Correction?

Despite the bitcoin fall, some analysts view this as a temporary correction rather than the start of a long-term downtrend. Historical patterns show that bitcoin price often reacts sharply to global events but tends to stabilize once market fears subside.

Crypto strategist Lydia Chen stated, “Bitcoin has shown resilience time and again. While short-term dips are common, long-term fundamentals remain strong—especially as institutional adoption continues.”

Outlook for Bitcoin and the Crypto Market

As the U.S.–China trade conflict evolves, traders are advised to monitor global policy updates closely. A prolonged trade standoff could pressure the crypto market further, while diplomatic progress might spark a quick recovery in bitcoin price and investor sentiment.

For now, market experts suggest exercising caution, keeping stop-loss levels in place, and avoiding panic-driven trades.