20 October 2025 <!-- | <span class="omc-comment-count"></span></p>--> <br><br>Just a few weeks ago, the largest cryptocurrency, Bitcoin, hit its all-time high. Bitcoin surged to over $126,000, but by the end of last week it was $19,000 cheaper – a drop of 15% in less than a fortnight.<br>Earlier this month, crypto enthusiasts were still hoping for an ‘UPtober’, so called because October often sees high cryptocurrency prices.<br>The fall can primarily be attributed to the trade dispute between the United States and China. After US President Donald Trump announced an additional 100% import tariff on all Chinese goods in response to China tightening its export rules for rare earth metals, the biggest crypto crash in years followed.<br><center>advertisement<br><span style="background-color:#FFFFFF; outline: none; outline-offset: 15px;"><a class="gofollow" data-track="OTU4LDQsMSw2MA==" href="https://events.zoom.us/ev/AkTTbT7eV28Zu8X3c7-xvow2IsGSXgp8nujiZEL-JlL2X1qXhQ1c~ApmOAZiQx-wbol4sstKdOrFdeHAji21_kz4PBeh77iNylzWVRUnEap_u0A?utm_source=phone_pulse&utm_medium=partner&utm_campaign=FY26-Q3-EMEA-CX_Summit_-2025-EM67039" target=" target="_blank"><img src="https://www.techcentral.ie/wp-content/uploads/2025/10/Zoom-CX-Summit-Tech-central.png" /></a></span><br /> </center><br /> <br>Even when there seemed to be light at the end of the tunnel, and especially after the vice president made conciliatory remarks, prices did not recover.<br>On the contrary. On Friday, prices fell again due to problems in the American regional banking sector. The weak dollar, inflation expectations and geopolitical uncertainty also do little to help. Within 24 hours, more than $230 billion in value vanished from the entire crypto market.<br>“More than anything else, I think crypto is acting like a canary in the coal mine – a warning that the market is tense due to emerging concerns over the credit markets,” said Matthew Hougan, chief investment officer at crypto fund index Bitwise.<br>The market was nursing its wounds with massive losses for Ethereum (ETH), Ripple (XRP) and Solana (SOL). XRP lost 6.36%, Solana 7.29% and Cardano (ADA) even 8.2%.<br>Memecoins lost more than 30% of their value. The market for digital collectibles (including non-fungible tokens) dropped back below the $5 billion mark, a level not seen since July.<br>Investment funds that invest in Bitcoin and Ether, so-called spot ETFs, were seeing substantial outflows.<br>Prices later stabilised over the weekend. In an interview with Fox News, Trump said he was not seeking the destruction of China and described President Xi Jinping as a “smart leader” who is open to a deal. For the time being, Bitcoin’s price has recovered to $111,000 at time of writing. Concrete agreements between the US and China, however, still seem a long way off.<br>In any case, Bitcoin is no longer seen as a safe haven, or ‘digital gold’. Real gold is, though. Over the past week, the gold price crossed the $4,000 per ounce threshold for the first time. Some banks such as Goldman Sachs and Bank of America even have their eyes on $5,000.<br>Admittedly, Bitcoin’s current price is still much higher than a year ago, when it closed at $70,000. The price has soared in part thanks to the Trump administration’s crypto-friendly policies. Since then, however, Bitcoin has barely managed to break new records, as if investors sense there’s not much more value in it to exploit.<br>Experts point to possible catalysts that could see the price recover somewhat: the approval of new spot-crypto ETFs by the US SEC, for example. Some cryptos are ‘cheap’ and investors may be willing to buy. 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