Why Crypto Is Down Today: Tariff Tensions, CPI Data, Fragile Gaza Peace Deal

1d ago•

bullish:

bearish:

Why is crypto down today? Did tariffs crush Uptober’s rally, or is this the perfect setup before the next breakout? Are traders panicking too early while smart money quietly loads up? As Bitcoin hovers around $ 113,000 (down 2% in 24 hours) and altcoins like Ethereum and Solana slip deeper, the total crypto market cap has fallen below $ 4 trillion again.

But behind the red candles lies opportunity. From Trump’s tariff bombshells to CPI anticipation and a fragile Gaza peace deal, this dip may not be a crash; it could be the calm before Uptober’s comeback. Let’s break down exactly why crypto is down today, and why bulls might be ready to push again.

Why Is Crypto Down Today? Tariff Tensions Reignite Market Fears

The primary trigger for the recent decline in crypto prices was the escalation of US-China trade tensions. On October 10, President Donald Trump announced a 100% tariff on all Chinese imports, effective November 1, in retaliation against China’s export limits on rare earth minerals.

Stricter controls on rare earths materials form China

Military use exports completely banned

maybe it’s a negotiation tactic to get better tax rates?
Or
Maybe pure retaliation?

Bottom line, you wake up the giant then will be difficult to get back to status quo pic.twitter.com/2vN3eSD7Ys

— Marco Castelli (@macastel3) October 9, 2025

The shock sent the market tumbling, wiping over $ 200 billion from crypto’s market cap in hours. Bitcoin BTC $112,826.16 1.40% Bitcoin BTC Price $112,826.16 1.40% /24h Volume in 24h $77.27B Price 7d Learn more dropped 16% and Ethereum ETH $4,146.87 2.29% Ethereum ETH Price $4,146.87 2.29% /24h Volume in 24h $49.16B Price 7d Learn more 21%. Liquidations topped $19 billion, one of the biggest washouts in crypto history. Analysts linked the chaos to overleveraged longs and fears of supply chain bottlenecks affecting blockchain hardware.

The traditional market wasn’t missed either. The S&P 500 fell 2.7%, the Nasdaq 3.5%, and the DAX 1%. But when Trump hinted at easing tensions on October 12, crypto instantly bounced, Bitcoin reclaimed $115.000 by October 13, with whale wallets buying the dip. Traders expect volatility until the Trump-Xi talk on October 20, but every dip so far has drawn buyers.

(Source – TradingView)

That’s why this sell-off feels more like a reaccumulation zone over support than a trend reversal. Tariff shocks come and go, but Bitcoin’s dominance and resilience remain.

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How Does CPI Data Keep Crypto on Edge?

The CPI delay is adding fuel to the uncertainty, keeping traders restless. The September CPI report, initially due October 15, was pushed to October 24 because of the government shutdown. Economists expect a 0.2% monthly increase and 2.6% annual inflation, numbers that could shape the Federal Reserve’s October 28-29 meeting—a soft confirmation of the next rate cut, sending liquidity back into risk assets, including crypto.

KEY U.S. ECONOMIC DATA AT RISK AMID GOVERNMENT SHUTDOWN

Data not expected to be released:

* Consumer Price Index (CPI)
* Producer Price Index (PPI)
* Jobless Claims
* Retail Sales
* Import/Export Price Index

Uncertain releases:

* Energy reports from U.S. Energy… pic.twitter.com/b00ie5Db0C

— *Walter Bloomberg (@DeItaone) October 14, 2025

But even with uncertainty, inflows remain strong. $440M flowed into Bitcoin ETFs last week alone, indicating that institutional buyers view this dip as an opportunity rather than a risk. Traders are also betting that slowing global growth and trade disruptions will push the Fed to cut rates again before year-end, adding fuel to the next crypto surge.

For now, crypto remains in a tight macro chokehold, but every time the Fed has cut in past cycles, Bitcoin has exploded shortly after. If inflation cools and liquidity returns, Uptober’s pullback could turn into November’s breakout.

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Is the Gaza Peace Deal Helping or Hurting Crypto?

The Gaza ceasefire, brokered by the US on October 10, briefly restored global optimism. The truce halted fighting, released 20 hostages, and allowed humanitarian aid to flood into Gaza.

The living Israeli hostages held in Gaza have been freed under the first phase of Donald Trump's peace plan, alongside a Palestinian prisoner release. The deal may become a signature achievement of Trump's second term, and it could mark a strategic turning point for the Middle… pic.twitter.com/0bZDABIDGj

— TIME (@TIME) October 13, 2025

But peace talks stall over governance and troop withdrawal, the deal remains fragile. Polymarket odds of the ceasefire lasting through year-end fell to 48%, reminding investors that geopolitical risks aren’t gone.

Still, the temporary calm triggered a risk-on bounce, oil dipped below $60, gold slid 2.4%, and Bitcoin climbed 2% as traders rotated back into crypto. For risk assets, stability (even fragile) is bullish. And with war fears easing and energy prices falling, the stage could be set for a market-wide rebound.

(Source – TradingView)

What we’re seeing isn’t a meltdown, it’s a macro reset. Tariffs, inflation, and geopolitics may be shaking weak hands, but the long-term trend still screams bullish. As liquidity builds, peace steadies, and traders eye the Fed’s next move. This correction could turn out to be the spark that ignites the rally.

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