The global cryptocurrency market, led by Bitcoin, witnessed a second consecutive day of losses on October 12, following a sharp market reaction to United States President Donald Trump’s announcement of an additional 100 per cent tariffs on China.
The overall cryptocurrency market capitalization has fallen to $3.7 trillion, down from a record high of $4 trillion just last week, according to CoinMarketCap. Trading volume currently stands at $250.02 billion. Despite the downturn, Bitcoin continues to dominate the crypto market, maintaining its majority share.
Why Is the Crypto Market Falling?
CoinMarketCap analysis indicates that the broader cryptocurrency market declined by 0.89 per cent over the past 24 hours, extending a seven-day loss of 11.5 per cent. The slump has been attributed primarily to geopolitical tensions, including Trump’s additional tariffs on China and restrictions on US software exports. Investors are also concerned about the potential for a full-scale trade war if China retaliates.
October 11 saw cryptocurrencies experience their largest liquidation in recent months, totaling $19 billion, as both equity and crypto markets tumbled. Investors fled to traditional safe-haven assets like gold and silver amid the uncertainty and market volatility.
Traders Remain Cautious
Open interest in crypto fell 18 per cent as traders exited high-risk positions, reflecting a low appetite for speculative investments. Analysts describe the market drop as a “combination of macroeconomic shockwaves and extreme leverage,” marking the worst day for crypto since Q1 2025. Traders are closely monitoring whether Bitcoin can hold the $110,000 support level and whether ETF inflows resume following the selloff.
Crypto Prices Today: Bitcoin and Ethereum
As of October 12, Bitcoin was trading at $111,122.51, down 1 per cent over the past 24 hours and 10.38 per cent over the past seven days. Its market capitalization fell slightly by 0.90 per cent to $2.22 trillion, with trading volumes down 45.84 per cent at $94.71 billion.
Ethereum, the world’s second-largest cryptocurrency, was trading at $3,798, down 0.39 per cent from the previous day. Its market capitalization stood at $458.43 billion, while trading volume declined 50 per cent to $54.44 billion.