Crypto Market Plunges as US-China Tariffs Trigger Mass Liquidations

I. Crypto Market Overview

Key Takeaways

Macro Environment

Escalating US-China trade tensions and tariff hikes have triggered global risk aversion, causing sharp sell-offs in both crypto and traditional markets. The looming US government shutdown and lack of Fed rate cut clarity have heightened economic uncertainty and reduced liquidity. Meanwhile, the EU reaffirms MiCA regulations as sufficient for stablecoin oversight, supporting regulatory clarity in Europe.

Crypto Market

The crypto market saw a sharp downturn in the past 12 hours, with Bitcoin down 7.5% to $112,224 and Ethereum falling 11.9% to $3,816, driven by risk-off sentiment from US-China trade tensions and mass liquidations. Most altcoins plunged, especially ARB (-26.1%), SUI (-23.0%), and DOGE (-23.9%), while ZEC surged 15.6% on renewed privacy coin interest. MemeCore (M) bucked the trend, rising 11.8% on strong Layer 1 meme ecosystem growth.

Today's Outlook

Today, a major Arbitrum (ARB) token unlock is set to impact market liquidity and price volatility, with ARB already down over 26%. Multiple airdrops, including ASTER S2 and Wallet Connect $WCT, are available for claim, potentially driving short-term trading activity.

Fear and Greed Index

46.00% Annual Percentile

54 Neutral

Total Crypto Market Cap

$3.75T

9.44%

Total Market Trading Volume

$526.76B

172.75%

Altcoin Season Index

0.00%

Quarterly Percentile

33 / 100

Total Futures Market Open Interest

3.39B

5.21%

Futures

1.20T

6.15%

Perpetuals

II. Industry Updates

Macro-economic Policies

The U.S. decision to double tariffs on Chinese imports has triggered global risk aversion, causing a sharp sell-off in both crypto and traditional markets, with Bitcoin and Ethereum experiencing significant price declines.

Escalating U.S.-China trade tensions and tariff hikes have led to a surge in market volatility, driving over $200 billion in crypto liquidations and amplifying risk-off sentiment across DeFi and NFT sectors.

The looming U.S. government shutdown and lack of Federal Reserve communication on rate cuts have heightened economic uncertainty, reducing liquidity and negatively impacting crypto market sentiment.

Levi's reported a 130-basis-point margin decline due to U.S. tariffs on its South Asian supply chain, highlighting how trade policy shifts can directly affect corporate earnings and indirectly pressure crypto asset valuations.

Cryptocurrency Regulatory Trends

US lawmakers remain deadlocked over crypto market structure legislation, with new DeFi regulations facing industry backlash and potential delays, increasing market uncertainty.

India has enforced strict KYC and AML requirements for crypto service providers under the PMLA, enhancing transparency and investor protection but raising compliance costs.

Pakistan established the Pakistan Crypto Council to develop a formal regulatory framework for digital assets, aiming to prevent misuse and align with global standards.

The European Commission reaffirmed that current MiCA regulations are sufficient to address stablecoin risks, rejecting calls for stricter oversight and supporting regulatory clarity in the EU.

South Korea announced plans to seize cryptocurrencies stored in cold wallets as part of a tax enforcement campaign, signaling stricter compliance and potential asset confiscation.

Zcash (ZEC): ZEC surged 15.4% in 24h to $273.83, driven by $1.2B trading volume and renewed privacy coin interest, making it the top gainer among major tokens.

MemeCore (M): MemeCore rose 10.1% in 24h to $2.24, with $34M volume and strong Layer 1 meme ecosystem growth, supported by Proof of Meme consensus and cross-chain staking.

UNUS SED LEO (LEO): LEO gained 0.5% in 24h to $9.62, with trading volume up 189% to $2.3M, reflecting increased platform activity and ongoing token burns by iFinex.

Smart Money Movements

Bitmine acquired 27,256 ETH worth approximately $104.24 million during the recent market dip, signaling continued institutional confidence in Ethereum.

USDC Treasury minted 500 million USDC on Solana in two rapid transactions, reflecting strong demand for stablecoins and active capital flows on the Solana network.

A Bitcoin whale profited $26.52 million after BTC dropped to $102,000, closing nearly 40% of short positions but still holding 1,300 BTC valued at $144 million.

A newly created Ethereum wallet accumulated 28,933 ETH, valued at $110.69 million, by withdrawing from Kraken and FalconX, highlighting ongoing large-scale ETH accumulation.

Crypto whales accumulated 600.88 billion PEPE tokens for $4.97 million USDT, with the buyer's wallet retaining $1 million USDC for potential further acquisitions.

Events to Watch

Oct 11 (Sat)

Arbitrum faces a major token unlock this weekend, potentially impacting market liquidity and price volatility; Multiple crypto airdrops, including Aster S2 and Wallet Connect $WCT, are available for claim.

Oct 13 (Mon)

Moonriver (MOVR) network upgrade scheduled at block 13,454,661 around 13:00 UTC; Portal to Bitcoin mainnet launches; Strata Protocol Mainnet and Season 1 go live.

Oct 14 (Tue)

Federal Reserve Board holds a closed meeting on financial markets; Wormhole unlocks 150.41M tokens at 11:30 UTC; Coinbase begins MATIC to POL upgrade; Monad airdrop claims portal opens; EU to vote on chat control bill.

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