Bitcoin (BTC) price dropped sharply this week as Trump’s 100% tariff on Chinese imports rattled markets, triggering a selloff; analysts say blockchain strength and Bitcoin ETFs may support a recovery.
The tariff-induced volatility pushed Bitcoin briefly below $120,000, its steepest intraday decline in weeks, but strong institutional inflows and resilient blockchain fundamentals suggest BTC could regain momentum soon.
Tariffs Trigger Market Turbulence as Bitcoin Extends Decline
Bitcoin (BTC) faced a sharp correction on October 10 after U.S. President Donald Trump announced a sweeping 100% tariff on Chinese imports in retaliation for Beijing’s rare earth export restrictions. The move rattled global markets, sending U.S. stocks down more than 2%—the steepest single-day drop since April—and wiping nearly $200 billion off the global crypto market.
Trump announces a 100% tariff on China starting Nov 1, reigniting fears of a new trade war and market turbulence. Source: @Geiger_Capital via X
According to data from Brave New Coin, Bitcoin prices fell nearly 10% to $106,000, down from previous highs above $120,000 earlier in the week. The selloff triggered over $19 billion in crypto liquidations, making it one of the most volatile sessions since the April 2024 Bitcoin halving.
The sell pressure came as traders reacted to fears of supply chain disruptions, particularly for tech sectors reliant on Chinese rare earth elements.
Tom Lee Calls It a “Buying Opportunity”
Despite the panic, some analysts view the pullback as temporary. Fundstrat’s Tom Lee said in a CNBC interview that the market reaction reflects short-term fear rather than structural weakness. “Unless there’s a real structural change, this pullback is a buying opportunity,” Lee noted, adding that “blockchain and AI remain the key drivers of this cycle.”
Tom Lee calls Bitcoin’s tariff-driven dip a potential buying opportunity, citing blockchain and AI as key long-term market drivers. Source: @RealAllinCrypto via X
He also warned that the market might “close near its lowest” but emphasized that both sectors—blockchain and artificial intelligence—are resilient to trade shocks.
Lee’s comments echo the sentiment of other long-term investors who believe that Bitcoin’s fundamental strength—from institutional demand to ETF flows—remains intact despite short-term volatility.
ETF Flows Show Institutional Confidence
Institutional activity through U.S.-listed Bitcoin ETFs continues to play a major role in shaping Bitcoin’s price in 2025. BlackRock’s iShares Bitcoin Trust (IBIT) remains the largest, holding over 800,000 BTC with assets under management approaching $97 billion, representing nearly 4% of Bitcoin’s total supply. This scale underscores the growing dominance of institutional investment in the crypto market, with inflows consistently supporting BTC prices even amid broader macroeconomic volatility.
BlackRock offloads $972.1 million in Bitcoin today, sparking market jitters and renewed attention on institutional crypto flows. Source: @ardizor via X
Recent volatility sparked confusion after reports suggested BlackRock sold large amounts of Bitcoin. In reality, these were mostly gross redemptions offset by inflows, resulting in substantial net positive flows. Institutional investors frequently transfer BTC between custodial accounts, which can be misinterpreted as market selling.
Overall, ETF inflows remain robust, with cumulative inflows exceeding $50 billion since 2024, demonstrating sustained institutional confidence in Bitcoin and its long-term growth prospects.
Bitcoin Cycles and Macro Structure
A macro view shared by crypto analyst @nobrainflip highlights Bitcoin’s recurring pattern of 1,064-day bull cycles followed by 364-day corrections. If that structure holds, the current bull market, which began after the Nov 21, 2022 bear low, could peak around early October 2025—aligning with the current period of volatility.
Bitcoin’s current bull cycle runs from November 2022 to October 2025. Source: @nobrainflip via X
While historical patterns often offer context, analysts caution against over-reliance. The last cycle, for instance, saw deviations of several weeks between tops and bottoms due to macro shocks and liquidity shifts.
Still, Bitcoin’s four-year halving cycle—most recently in April 2024—remains a core driver of its long-term price rhythm. Each halving historically reduces supply issuance and precedes major market rallies, suggesting Bitcoin’s broader bull structure may not yet be over.
Technical Outlook and Near-Term Forecast
From a technical standpoint, Bitcoin is testing major support around $100,000–$106,000 after failing to hold the $118K–$120K range. Analysts point to this level as a potential short-term accumulation zone if institutional inflows resume.
Bitcoin continues to find support at the 50 EMA, signaling bullish strength as it tests resistance near $126,000. Source: unichartz on TradingView
Momentum indicators, including the Bitcoin RSI, have reset from overbought levels, suggesting room for recovery if macro sentiment stabilizes. However, continued trade tensions or negative ETF flows could trigger another wave of BTC liquidations.
If the $100K support holds, Bitcoin could retest the $115K–$120K resistance zone in the coming weeks. A sustained breakout above that range may open a path toward Bitcoin’s all-time high near $124,000, set in August 2025.
Final Thoughts
Trump’s 100% tariff escalation against China sent shockwaves through global markets, triggering one of Bitcoin’s sharpest drops this year. But despite the turbulence, analysts like Tom Lee see resilience in blockchain fundamentals, AI growth, and institutional participation through Bitcoin ETFs.
Bitcoin (BTC) was trading at around $112,384, down 7.51% in the last 24 hours at press time. Source: Bitcoin Price via Brave New Coin
As volatility persists, Bitcoin’s next move will likely depend on ETF inflow strength, macro sentiment, and market liquidity conditions. If confidence returns and support levels hold, this pullback could evolve into a mid-cycle correction rather than a trend reversal—setting the stage for Bitcoin’s next leg toward higher valuations.