The cryptocurrency market entered a full risk-off phase following President Donald Trump’s surprise announcement of a 100% tariff on all Chinese imports starting November 1, 2025.
The decision, framed as a direct response to Beijing’s alleged “aggressive trade actions,” sent shockwaves across global markets, and crypto bore the brunt of the panic.
Market Cap and CMC200 Plunge Nearly 10%
According to CoinMarketCap data, the total crypto market capitalization plunged 9.45% in 24 hours, dropping to $3.74 trillion. The CMC200 Index, which tracks the top 200 cryptocurrencies, fell by a nearly identical 9.66%, reflecting the widespread market sell‑off. Analysts attributed the synchronized drop to traders liquidating risk assets amid fears that escalating trade tensions could spark a global economic slowdown.
Fear Dominates as Sentiment Hits 35
The Crypto Fear & Greed Index now sits at 35, firmly in the “Fear” zone. The sentiment swing mirrors the sharp decline seen during past macroeconomic shocks, including the 2022 interest rate hikes and 2024 ETF panic. The sudden policy move by President Trump has injected volatility and uncertainty, forcing both institutional and retail traders to pull back from leveraged positions.
Altcoin Season Loses Momentum
The Altcoin Season Index fell to 33/100, showing a clear rotation back into Bitcoin as investors seek relative stability. Altcoins like Ethereum, Solana, and XRP posted double‑digit losses overnight, with Ethereum briefly dipping below $3,500 before recovering to around $3,800 at the time of writing. This sharp rotation reflects short‑term defensive positioning as traders await more clarity on global trade policy impacts.
RSI Shows Oversold Conditions
Despite the sharp correction, the average crypto RSI stands at 29.29, signaling oversold conditions across the market. Technical analysts suggest that while sentiment remains fragile, the extreme reading could trigger a near‑term bounce, particularly if macro tensions stabilize.
Still, with over $19 billion in liquidations recorded within 24 hours and fear dominating investor psychology, the market remains on edge. Trump’s tariff escalation has effectively reignited global risk aversion, reminding traders that even digital assets are not immune to geopolitical shocks.