Today, the prices of Bitcoin, Ethereum, and Dogecoin are experiencing significant declines, leading to a bearish outlook in the cryptocurrency market. This followed a recent move by U.S. President Donald Trump, which has raised concerns of a potential trade war with China.
Reasons Behind the Decline of Bitcoin, Ethereum, and Dogecoin Prices
Current data from CoinMarketCap indicates that Bitcoin, Ethereum, and Dogecoin are experiencing price drops today. Bitcoin has fallen as low as $104,000 in the past 24 hours, erasing its early October gains that previously led to a new all-time high (ATH) above $126,000. Ethereum saw a decrease to around $3,400, while Dogecoin dipped below the psychological $0.2 mark to $0.11.
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This sharp downturn in Bitcoin, Ethereum, and Dogecoin prices came after a post by Trump on Truth Social, where he stated that the U.S. would implement a 100% tariff on China, in addition to any existing tariffs, effective November 1. He also mentioned the imposition of Export Controls on all essential software from China starting on the same date.
Earlier that day, Trump had already warned of a possible significant increase in tariffs, describing China as becoming hostile. This initial warning caused Bitcoin’s price to sharply drop below $120,000 from a previous high of about $122,000, while Ethereum and Dogecoin also suffered notable declines.
At the time Trump announced the 100% tariff on China, Bitcoin was trading around $116,000, which spiraled the crypto market downward. The decline of BTC also led Ethereum and Dogecoin to reach intraday lows of $3,400 and $0.11, exacerbating their market losses. These drastic price drops contributed to the largest liquidation event in cryptocurrency history.
According to CoinGlass data, $20 billion has been erased from the cryptocurrency market within the last 24 hours, driven primarily by the crashes in Bitcoin, Ethereum, and Dogecoin prices. This liquidation event has surpassed the COVID-19 crash and the FTX bankruptcy crash.
Exchanges May Have Played a Role in the Crash
Arthur Hayes, co-founder of BitMEX, suggested that cryptocurrency exchanges might have played a role in the decline of Bitcoin, Ethereum, and Dogecoin prices. In a recent post on X, he noted that speculation suggests major centralized exchanges automated the liquidation of collateral connected to cross-margined positions, which could explain why many altcoins “got smoked during the drop.” He congratulated those who took advantage of the dip, indicating that it may be a long time before those altcoin levels are seen again.
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Crypto analyst Kevin Capital argued that the decline in prices for Bitcoin, Ethereum, and Dogecoin stemmed from serious issues affecting top exchanges like Robinhood, Coinbase, and Binance. He further pointed out that these exchanges failed to allow users to buy during the dip at the lowest prices.
Image source from iStock, chart from Tradingview.com
