Key Takeaways
- •Trade war comments caused a sharp crypto dip.
- •Investors gained 7–14% from the dip.
- •Institutional inflows into Bitcoin ETFs surged.
In October 2025, escalating trade war tensions sparked by U.S. President Donald Trump's tariff announcement triggered a sharp dip in major cryptocurrencies, including Bitcoin and Ethereum, causing market volatility.
This market correction offered a profitable opportunity for investors, with a 7–14% gain potential, highlighting significant institutional inflows into crypto ETFs and ongoing accumulation by long-term holders.
The October 2025 crypto dip followed escalating trade war news involving the U.S. and China. Investors who swiftly bought during this period experienced gains of 7-14% in lead cryptocurrencies like Bitcoin and Ethereum, amidst high market volatility.
President Donald Trump's announcement of a significant tariff hike on Chinese imports was a key catalyst of the dip, influencing both institutional investors and individuals in their trading strategies. Exchange data indicates substantial movements during this volatility.
The dip saw a daily spike in volumes, reaching $206 billion, illustrating high investor activity. Significant funds, totaling approximately $1.2 billion, also flowed into U.S. Bitcoin spot ETFs, signaling strong institutional confidence in future price recovery. Institutional involvement has been increasing, highlighted by record inflows into crypto ETFs, with U.S. spot Bitcoin ETFs absorbing nearly $1.2 billion on Oct 6. After the dip, hundreds of millions flowed into Bitcoin ETFs, indicating that big players are maintaining or increasing their exposure.
Assets such as BTC plunged from $126,000 to $108,000 before stabilizing between $112k and $121k. ETH and altcoins, including Zcash, showed varying impacts, with some tokens like memecoins dropping significantly amid this turmoil.
BTC and ETH maintained their status as core assets during the course of these events. Long positions suffered liquidations exceeding $19 billion, while declining exchange balances highlighted continued accumulation by long-term holders, further indicating market resilience. “Long-term holders are not panic selling; Bitcoin exchange balances are declining, indicating accumulation.”
Historical patterns point to similar recovery trends post‑geopolitical events, suggesting a potential rebound. Institutional ETF inflows and ongoing long‑term holdings support sustained interest, with exchanges witnessing adjustments as volatility impacts trading positions.