Despite the wavering markets, some crypto analysts were cautiously optimistic. “Easing monetary conditions are supportive of upward price momentum for BTC [Bitcoin] so long as the macroeconomic outlook doesn’t pose severe issues unforeseen by the market,” Alex Blume, founder and CEO of the crypto asset manager Two Prime, said in an email to Fortune.
The crash coincided with President Donald Trump’s threat to hit China with a 100% tariff “over and above” existing tariffs, causing Bitcoin to shed more than $200 million in market cap and plummet nearly 10% in price. Ethereum experienced an even more drastic downturn, tanking almost 14%.
“The fluctuating macroeconomic backdrop is [the] dominant driver of this crypto cycle,” Thomas Perfumo, global economist at the crypto exchange Kraken, said in an email to Fortune, adding later: “While the market is stabilizing after the Oct. 10 liquidation event, this ‘reset’ event certainly reduced short-term risk tolerance.”
