Why Crypto Is Declining Today: Tensions Over Tariffs, CPI Metrics, Delicate Gaza Peace Agreement
What’s causing the crypto dip today? Did tariffs put an end to Uptober’s surge, or is this a strategic moment before the next price rally? Are traders overreacting while savvy investors quietly accumulate? As BTC hovers near $113,000 (down 2% in the last 24 hours) and altcoins like ETH and Solana decline further, the overall crypto market cap is back below $4 trillion once more.
However, amid the downtrend sentiment lies potential. From Trump’s tariff announcements to CPI expectations and a tenuous Gaza ceasefire, this downturn could merely be a prelude to Uptober’s resurgence. Let’s analyze why crypto is down today, and why bulls may be gearing up for another push.
Why Is Crypto Down Today? Renewed Tariff Tensions Fuel Crypto market Concerns
The main factor behind the latest drop in digital currency values has been the intensification of US-China trade conflicts. On October 10, President Donald Trump declared a 100% tariff on all Chinese imports, starting November 1, as a response to China’s limits on rare earth mineral exports.
Stricter controls on rare earths materials from China
Military export bans entirely
perhaps it’s a strategy to negotiate better tax rates?
Or
Maybe sheer retaliation?Bottom line, you awaken the giant and returning to the former status quo will be challenging pic.twitter.com/2vN3eSD7Ys
— Marco Castelli (@macastel3) October 9, 2025
This update sent the market spiraling downward, erasing more than $200 billion from cryptocurrency’s crypto market cap in mere hours.
Bitcoin
1.80%
BTC
BTC
Price
$111,559.76
1.80% /24h
Volume in 24h
$61.08B
Price 7d
tumbled by 16% and
ETH
3.58%
ETH
Ethereum
Price
$4,011.45
3.58% /24h
Volume in 24h
$36.16B
Price 7d
21%. Liquidations exceeded $19 billion, marking one of the largest sell-offs in crypto’s history. Experts attributed the tumult to excessive long positions and concerns about circulating supply chain disruptions impacting blockchain equipment.
The traditional stock market felt the impact too, with the S&P 500 declining by 2.7%, Nasdaq dropping by 3.5%, and DAX falling by 1%. Yet, when Trump suggested a potential easing of trade tensions on October 12, crypto rebounded quickly, with BTC recovering to $115,000 by October 13, as big investor addresses purchased the dip. Traders anticipate volatility leading up to the Trump-Xi discussions scheduled for October 20, but every dip thus far has attracted buyers.
(Source – TradingView)
This dump feels more like an opportunity for reaccumulation at a base level level rather than a reversal of a trend. Tariff shocks are temporary, yet Bitcoin’s strength and market dominance persist.
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How Does CPI Data Affect Crypto Sentiment?
The delay in the Consumer Price Index (CPI) report is amplifying the uncertainty, keeping traders anxious. The September CPI report, which was initially set to be released on October 15, has been rescheduled to October 24 due to the government shutdown. Analysts anticipate a 0.2% monthly rise and an annual inflation rate of 2.6%, figures that could influence the Federal Reserve’s meeting on October 28-29—possibly validating the next rate cut, which would inject available volume back into risk assets, including cryptocurrencies.
KEY U.S. ECONOMIC DATA AT RISK AMID GOVERNMENT SHUTDOWN
* Consumer Price Index (CPI)
* Producer Price Index (PPI)
* Jobless Claims
* Retail Sales
* Import/Export Price Index
* Energy reports from U.S. Energy… pic.twitter.com/b00ie5Db0C
— *Walter Bloomberg (@DeItaone) October 14, 2025
Despite the uncertainty, inflows remain robust. A total of $440 million flowed into BTC ETFs just last week, signaling that institutional investors see this dip as a chance rather than a threat. Traders are also speculating that slowing global economic growth and trade disruptions will prompt the Fed to lower rates again before the end of the year, further paving the way for another crypto upsurge.
Currently, crypto faces a tight macroeconomic grip, yet historically, each time the Fed has implemented a rate cut, BTC has surged shortly thereafter. If inflation subsides and market fluidity returns, Uptober’s retreat might evolve into November’s advance.
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Does the Gaza Peace Deal Benefit or Detract from Crypto?
The ceasefire in Gaza, facilitated by the U.S. on October 10, briefly restored global optimism. The agreement halted hostilities, freed 20 hostages, and opened the gates for humanitarian aid flow into Gaza.
The Israeli hostages held in Gaza have been released in the first phase of Donald Trump’s peace initiative, along with a Palestinian prisoner release. This deal could become a hallmark of Trump’s second term and may signify a pivotal moment for the Middle… pic.twitter.com/0bZDABIDGj
— TIME (@TIME) October 13, 2025
Nonetheless, peace negotiations have stalled regarding governance and troop withdrawal, leaving the agreement precarious. Polymarket’s odds of the ceasefire enduring until year-end have dropped to 48%, reminding investors that geopolitical uncertainties still loom.
Still, the respite ignited a risk-on response, causing oil to dip below $60, gold to tumble by 2.4%, and Bitcoin to rise by 2% as traders shifted back towards crypto. For risk-oriented assets, even fragile stability is a positive signal. With fears of conflict easing and energy prices decreasing, conditions may be ripe for a broader trading market recovery.
(Source – TradingView)
What we are witnessing doesn’t indicate a collapse, but rather a macroeconomic adjustment. While tariffs, inflation, and geopolitical tensions may unsettle weak holders, the long-term trajectory remains decidedly bullish. As liquidity increases, conditions stabilize, and investors contemplate the Fed’s forthcoming actions, this crypto market correction could very well serve as the catalyst for an upward rally.
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Key Takeaways
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