Market optimism for "Uptober" was shattered by Trump's announcement of additional 100% tariffs on Chinese goods, triggering panic across global financial markets. Bitcoin plummeted from a high of $122,000 to approximately $104,582, a single-day drop of 7%. Ethereum fell nearly 8%, and Solana dropped over 7%.

A Bloodbath Across Markets

The cryptocurrency market saw nearly $10 billion in liquidations within 24 hours, affecting over 1.52 million people. U.S. stocks recorded their worst single-day drop in months, with the Nasdaq falling 3.56%. Analysts attribute the sell-off to trade war fears, causing investors to flee high-risk assets, reset market leverage, and shift sentiment from euphoria to caution.

The anticipated "Uptober" rally faced a severe setback in the second week of October. Collective market hopes were put on hold by Trump's new tariff threats. On Friday local time, Trump stated he would impose an additional 100% tariff on Chinese goods, on top of the already effective 30% tariff, effective November 1st or earlier.

U.S. stocks suffered their largest single-day plunge in months, while the cryptocurrency market instantly turned into a bloody slaughterhouse. Bitcoin crashed rapidly from over $122,000 on Friday morning to around $104,582.41, wiping out almost all of October's gains and returning its price to October 1st levels.

Altcoins and Stocks Tumble

Ethereum fell more sharply, dropping nearly 8% to approximately $3,975, hitting a new low for October. Solana followed closely, falling over 7% to $205, also touching its lowest point this October. WLFI, the native token associated with the Trump family platform, wasn't spared either, immediately crashing over 17% after Trump's tariff announcement.

According to CoinGlass, nearly $10 billion was liquidated in the past 24 hours, with over 1.52 million traders liquidated. U.S. stocks had their worst day since April: The Nasdaq Composite fell the deepest, closing down 3.56%. The S&P 500 closed down 2.71%, its largest single-day percentage drop since April 10th. The Dow Jones Industrial Average closed down 1.90%. Panic persisted after the Wall Street close, with tech stocks like Nvidia, Tesla, Amazon.com, and Advanced Micro Devices all falling over 2% in after-hours trading.

Macro Risks Hit Market Fragility

Analysts widely believe that fears of "tit-for-tat" trade friction between the two largest economies escalating into a full-blown trade war, potentially stifling global growth, were key to the synchronized stock and crypto crash.

"It was a brutal day," commented Ram Ahluwalia, founder of investment firm Lumida Wealth, noting that Trump's tariff action triggered comprehensive "de-risking." Investors retreated from volatile assets like stocks, tech shares, and cryptocurrencies, which are closely tied to growth prospects, seeking safety. He said, "Trump's news combined with an 'overbought' condition led to a significant market decline."

Zaheer Ebtikar, founder and CIO of crypto hedge fund Split Capital, stated: "The altcoin market completely collapsed... The altcoin market had reached its highest level in over a year. Leverage was reset across the board, and the market was chaotic."

AI Theme Intact, But Challenges Remain

This sell-off, especially the major drop in U.S. stocks, reignited concerns about a significant market downturn. JPMorgan Chase CEO Jamie Dimon had previously warned that the risk of a major correction on Wall Street had increased within the next six months to two years. Prior to this crash, the U.S. stock market was on a record-breaking run, with the S&P 500 and Nasdaq hitting all-time highs just on Thursday. Year-to-date, the Nasdaq was up about 15% and the S&P 500 about 11%, driven largely by AI frenzy.

However, some investors believe the current trade tensions are unlikely to completely derail the market trajectory. For instance, James St. Aubin, CIO of Ocean Park Asset Management, views this as a "significant issue" that could cause a pullback but said he "doesn't necessarily think it disrupts the AI theme that's been driving the market."

For the crypto market, the failure of "Uptober" means sentiment has rapidly shifted from early-month euphoria and record-high expectations to sensitivity and caution regarding macro risks. Unless trade tensions ease quickly or new strong positive news emerges, the crypto market faces challenges and may need time to digest this sudden "Red October scare."

Market optimism for "Uptober" was shattered by Trump's announcement of additional 100% tariffs on Chinese goods, triggering panic across global financial markets. Bitcoin plummeted from a high of $122,000 to approximately $104,582, a single-day drop of 7%. Ethereum fell nearly 8%, and Solana dropped over 7%.

A Bloodbath Across Markets

The cryptocurrency market saw nearly $10 billion in liquidations within 24 hours, affecting over 1.52 million people. U.S. stocks recorded their worst single-day drop in months, with the Nasdaq falling 3.56%. Analysts attribute the sell-off to trade war fears, causing investors to flee high-risk assets, reset market leverage, and shift sentiment from euphoria to caution.

The anticipated "Uptober" rally faced a severe setback in the second week of October. Collective market hopes were put on hold by Trump's new tariff threats. On Friday local time, Trump stated he would impose an additional 100% tariff on Chinese goods, on top of the already effective 30% tariff, effective November 1st or earlier.

U.S. stocks suffered their largest single-day plunge in months, while the cryptocurrency market instantly turned into a bloody slaughterhouse. Bitcoin crashed rapidly from over $122,000 on Friday morning to around $104,582.41, wiping out almost all of October's gains and returning its price to October 1st levels.

Altcoins and Stocks Tumble

Ethereum fell more sharply, dropping nearly 8% to approximately $3,975, hitting a new low for October. Solana followed closely, falling over 7% to $205, also touching its lowest point this October. WLFI, the native token associated with the Trump family platform, wasn't spared either, immediately crashing over 17% after Trump's tariff announcement.

According to CoinGlass, nearly $10 billion was liquidated in the past 24 hours, with over 1.52 million traders liquidated. U.S. stocks had their worst day since April: The Nasdaq Composite fell the deepest, closing down 3.56%. The S&P 500 closed down 2.71%, its largest single-day percentage drop since April 10th. The Dow Jones Industrial Average closed down 1.90%. Panic persisted after the Wall Street close, with tech stocks like Nvidia, Tesla, Amazon.com, and Advanced Micro Devices all falling over 2% in after-hours trading.

Macro Risks Hit Market Fragility

Analysts widely believe that fears of "tit-for-tat" trade friction between the two largest economies escalating into a full-blown trade war, potentially stifling global growth, were key to the synchronized stock and crypto crash.

"It was a brutal day," commented Ram Ahluwalia, founder of investment firm Lumida Wealth, noting that Trump's tariff action triggered comprehensive "de-risking." Investors retreated from volatile assets like stocks, tech shares, and cryptocurrencies, which are closely tied to growth prospects, seeking safety. He said, "Trump's news combined with an 'overbought' condition led to a significant market decline."

Zaheer Ebtikar, founder and CIO of crypto hedge fund Split Capital, stated: "The altcoin market completely collapsed... The altcoin market had reached its highest level in over a year. Leverage was reset across the board, and the market was chaotic."

AI Theme Intact, But Challenges Remain

This sell-off, especially the major drop in U.S. stocks, reignited concerns about a significant market downturn. JPMorgan Chase CEO Jamie Dimon had previously warned that the risk of a major correction on Wall Street had increased within the next six months to two years. Prior to this crash, the U.S. stock market was on a record-breaking run, with the S&P 500 and Nasdaq hitting all-time highs just on Thursday. Year-to-date, the Nasdaq was up about 15% and the S&P 500 about 11%, driven largely by AI frenzy.

However, some investors believe the current trade tensions are unlikely to completely derail the market trajectory. For instance, James St. Aubin, CIO of Ocean Park Asset Management, views this as a "significant issue" that could cause a pullback but said he "doesn't necessarily think it disrupts the AI theme that's been driving the market."

For the crypto market, the failure of "Uptober" means sentiment has rapidly shifted from early-month euphoria and record-high expectations to sensitivity and caution regarding macro risks. Unless trade tensions ease quickly or new strong positive news emerges, the crypto market faces challenges and may need time to digest this sudden "Red October scare."