TLDR
- Bitcoin price fell over 5% to $99,980, marking its lowest level since June and a 20% drop from last month’s peak
- The crash triggered $1.36 billion in liquidations on Tuesday, with open interest in Bitcoin futures remaining below pre-crash levels
- Despite easing U.S.-China trade tensions and both countries agreeing to reduce tariffs, crypto markets have not recovered
- The Federal Reserve and Bank of Canada both cut interest rates by 25 basis points, but this has not lifted market sentiment
- Bitcoin is currently trading near its 50-week simple moving average at around $102,900, a level that has historically acted as strong support during the three-year uptrend
Bitcoin dropped over 5% on Tuesday to reach $99,980. This marks the lowest price point since June.
The decline represents a 20% fall from the peak reached last month. This officially puts Bitcoin in bear market territory.
Ethereum also fell by 6.6% during the same period. Some altcoins have seen losses exceeding 50% this year.
The crash occurred during one of the most violent single-day drops in crypto market history. Over $19 billion worth of positions were liquidated within 24 hours when President Donald Trump imposed a 100% tariff on Chinese imports.
Tuesday’s data from Coinglass shows total liquidations reached $1.78 billion. This represents a decrease from the initial crash but still reflects substantial market stress.
Open interest in Bitcoin futures remains well below pre-crash levels. Traders appear hesitant to enter new positions despite favorable funding rates.
The weak recovery reflects cautious market sentiment. Bitcoin is currently up less than 10% for the year.
Options Traders Prepare for Further Declines
Options market participants have started hedging against potential price drops. Data shows increasing demand for put options targeting the $80,000 price level.
The Bitcoin crash mirrors the performance of high-growth technology stocks. Companies like Nvidia and Palantir have experienced steep corrections due to high valuations.
Trade War Cooling Fails to Boost Markets
The market decline comes at a time when U.S.-China trade tensions are easing. Washington and Beijing reached an agreement to scale back tariffs and increase farm imports.
The U.S. agreed to cut tariffs on Chinese goods by 10%. China committed to purchasing more U.S. soybeans and delaying restrictions on rare earth mineral exports.
China announced early Wednesday it will suspend its 24% additional tariff on U.S. goods for a year. The country will retain only the 10% levy.
Breaking: #China just suspended the 24 % extra tariff on ALL US goods for ONE FULL YEAR.
Effective 13:01 Beijing time, Nov 10, 2025 (that’s 00:01 EST Nov 10), the People’s Republic of China lifts the 24 % retaliatory it applied in April, leaving only the 10% baseline duty.
— MartyParty (@martypartymusic) November 5, 2025
The Ministry of Finance confirmed it will halt retaliatory tariffs on U.S. agricultural products. This includes soybeans, corn, wheat, sorghum, and chicken starting Monday.
The agreement followed a meeting last week between President Trump and Chinese President Xi Jinping. Washington also decided to halve its fentanyl-related levies on Chinese goods.
Central banks have taken action to support slowing economic growth. The U.S. Federal Reserve and the Bank of Canada both cut interest rates by 25 basis points last week.
The Fed lowered rates for the second time in 2025. The new range sits between 3.75% and 4.0%.
The ongoing U.S. government shutdown adds to market uncertainty. The Senate has failed 14 times to pass a short-term funding bill.
Bitcoin is currently trading near its 50-week simple moving average at around $102,900. This level has served as strong support throughout the nearly three-year uptrend.
The 50-week SMA has acted as a launching point for bullish momentum at least three times since 2023. Traders are watching to see if this support level holds for a fourth time.
One factor weighing on sentiment is Sequans Communications’ decision to sell its Bitcoin holdings. The company plans to use proceeds to retire half of its convertible debt.