Bitcoin tumbled below $109,000 on Thursday as trade-war fears and bond yield spikes sent shockwaves across risk markets, spoiling what was supposed to be crypto’s historically bullish month.

Crypto Rally Stalls Amid Global Tensions

Major digital assets extended losses Thursday, with Bitcoin (BTC-USD) down 2.4% to $108,480, according to CoinMarketCap. The CoinDesk Market Index, tracking dozens of leading digital assets, fell 3.1% in 24 hours as investors fled risk-on trades.

Ethereum (ETH-USD) slipped 2.3% to $3,891, while XRP (XRP-USD) dropped 3%, BNB (BNB-USD) fell 1.6%, and Solana (SOL-USD) sank 4.5%. Dogecoin (DOGE-USD) and Cardano (ADA-USD) also declined 4.3% and 3.4%, respectively.

Trading activity, however, surged — Bitcoin’s 24-hour volume jumped 20% to $87 billion, suggesting institutional investors were repositioning portfolios amid rising global uncertainty.

‘Uptober’ Turns ‘Down-tober’

Historically, October has been a bullish month for cryptocurrencies, with Bitcoin rising nine out of the last eleven years. But 2025 is breaking the pattern.

After hitting an all-time high earlier this month, Bitcoin is now down 14% from its peak, marking its steepest October decline since 2018. According to CoinDesk, the token briefly fell as much as 15% over the weekend, a percentage drop that outpaced the Dow’s single-day crash in 1929 when measured proportionally.

“Investors are shifting away from riskier assets as macro tensions escalate,” analysts at Barron’s noted. “What was supposed to be ‘Uptober’ has quickly turned into ‘Down-tober.’”

Trade War Fears and Bond Yields Pressure Crypto

Markets are on edge after President Trump confirmed the U.S. is ‘in a trade war’ with China, reigniting fears of tariffs and export controls that could hit global liquidity and tech demand.

  • The U.S. 10-year Treasury yield spiked to 4.975%, its highest since 2022.
  • The S&P 500 and Dow Jones Industrial Average each fell 0.7%, while the Nasdaq 100 slipped 0.4%.
  • The total crypto market cap dropped 2.9% to $3.66 trillion, as traders braced for further volatility.

“The combination of rising yields, trade uncertainty, and profit-taking after Bitcoin’s record run has created a perfect storm,” said crypto strategist George Glover.

Altcoins and DeFi: Mixed Signals

Outside major coins, Ethena (ENA-USD) plunged 5.3%, while Yield Basis tokens saw minor gains. PAX Gold (PAXG) — a gold-backed stable asset — rose 3%, reflecting a flight to safety as investors rotated from crypto to commodities.

Market Outlook: Volatility Ahead

Crypto analysts warn that if tariff tensions between the U.S. and China deepen, Bitcoin could face further downside toward the $100,000 support zone, while altcoins may underperform.

Still, long-term bulls argue that structural tailwinds — including ETF inflows, institutional adoption, and declining exchange reserves — could reignite momentum once macro headwinds ease.

“Uptober” was supposed to reaffirm crypto’s resilience — but instead, it’s testing it.
As global markets buckle under trade uncertainty and soaring bond yields, digital assets are facing their toughest month of 2025. Whether Bitcoin bounces back or breaks lower may depend less on crypto sentiment and more on what happens next in Washington and Beijing.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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