Key Takeaways
- On 18 October 2025, Bitcoin fell below $110,000 following Trump’s new tariff announcement. This triggered $19 billion in liquidations and significant market turmoil.
- The October 2025 crypto crash erased $400 billion in total market value within days and shifted investor sentiment across the sector.
- Bitcoin’s plunge marked the largest single-day drop since March 2025.
- Ethereum futures reached record highs, with Q3 trading volume up 350%.
- A suspicious $88 million Bitcoin short trade raised concerns about possible insider activity.
- Calls for clearer regulation increased as volatility alarmed both experts and newcomers.
Introduction
On 18 October 2025, Bitcoin’s price dropped sharply below $110,000 after former President Trump’s tariff announcement triggered significant liquidations. The October 2025 crypto crash erased $400 billion from the sector within days. This review examines the broader impact on market sentiment and investor confidence, as well as notable developments in Ethereum futures and regulatory responses.
Top Story
Crypto Markets Reel from Trump Tariff Announcement
Bitcoin declined below $110,000 after former President Trump announced proposed cryptocurrency tariffs if re-elected. This marked the most significant single-day percentage decrease since March 2025.
Trading volume climbed to $89 billion across major exchanges as institutional investors rapidly adjusted their positions. The selloff accelerated when several large hedge funds reportedly liquidated long positions exceeding $2.1 billion.
Goldman Sachs analysts stated that the market move reflects increasing uncertainty about future regulatory environments. Sarah Chen, chief crypto strategist at the bank, noted that such policy proposals introduce significant regulatory risk not previously accounted for by investors.
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Regulatory Response
The U.S. Treasury announced that its comprehensive digital asset framework will be released by December 2025, three months ahead of schedule. This accelerated timeline aims to address ongoing market stability concerns.
During a press briefing on 17 October 2025, Deputy Secretary Williams emphasized the need for regulatory clarity. She stated that the department is working to ensure future policy changes maintain U.S. competitiveness in digital finance.
Asian Markets Signal Support
Japan’s Financial Services Agency reiterated its commitment to crypto-friendly policies amid recent volatility. Regulators highlighted the success of Japan’s digital asset oversight program in supporting market resilience.
Market Wrap
Crypto Sector Impact
Major cryptocurrencies mirrored Bitcoin’s trajectory. Ethereum dropped 12.3 percent to $6,800. DeFi tokens saw sharper declines, with the DeFi Index falling 15.7 percent.
Stablecoins recorded all-time high trading volumes as traders positioned for safety. USDC and USDT spreads widened to unusual levels. Traditional safe-haven assets, including gold and U.S. Treasuries, saw significant inflows during the period.
Traditional Markets
U.S. equities showed relative stability, with the S&P 500 down 0.8 percent. In contrast, crypto-adjacent stocks such as major exchanges and mining companies declined by an average of 8.5 percent, reflecting greater pressure on those sectors.
What to Watch
- 21 October 2025: Federal Reserve CBDC working group presents findings
- 23 October 2025: Congressional hearing on cryptocurrency market stability
- 25 October 2025: G20 Digital Finance Task Force meeting in Singapore
- 28 October 2025: Major crypto exchange quarterly earnings reports
Conclusion
The October 2025 crypto crash has prompted a reassessment of sector outlooks. Bitcoin’s steep decline underscored persistent regulatory uncertainty and the effect of policy announcements on market confidence. The surge in demand for stablecoins and traditional safe-haven assets highlighted investors’ response to volatility. What to watch: Major regulatory reviews, including the Federal Reserve’s CBDC findings on 21 October 2025 and the Congressional stability hearing on 23 October 2025, are likely to influence the sector’s direction in the coming weeks.
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