Crypto Market Crash News: Is a Bigger Storm Coming Next?

US-China Tariff Shock and ETF Outflows Trigger Crypto Market Crash

Can one political statement trigger a trillion-dollar storm? The crypto world is finding out the hard way. October — known historically as a month of wild swings — has once again lived up to its reputation. From record highs to a sudden crypto market crash, investors have witnessed a breathtaking turnaround within 24 hours.

The global cryptocurrency market cap plunged from $3.96 trillion to $3.78 trillion, now stabilizing at $3.87 trillion, marking a sharp 3.9% drop in a single day. Total trading volume stands at $244 billion, with Bitcoin dominance at 57.3% and Ethereum at 12.4%. But, why crypto market is down today? Let’s find out. 

US-China Tariff War Sparks Panic Across Markets

The biggest trigger behind today’s crypto market crash is the China US Tariff News. On October 14, 2025, China issued a fierce warning that it was prepared to “fight to the end” if the US moved ahead with a 100% trade tariff. This came in response to Trump’s recent decision targeting Chinese rare earth exports — a move he called “hostile” and “an attempt to hold the world captive.”

Source: X

“If you wish to fight, we shall fight to the end,” said a Chinese commerce ministry spokesperson, adding that the US cannot “seek dialogue while threatening new restrictive measures.”

This bold stance rattled global lansdcape. Traders, fearing escalation, rapidly de-risked — rotating capital out of altcoins and pushing Bitcoin price crash into motion.

Bitcoin fell 3.34%, dropping from $115,924 to $111,271, with $77.08B in 24h trading volume. Ethereum slumped 4.46% to $3,977, and BNB price nosedived 11% to $1,194.35, just a day after touching an all-time high of $1,370.55.

ETF Outflows and Metaplanet Collapse Add Fuel

The tariff shock wasn’t the only factor behind the crypto market crash. Spot Bitcoin and Ethereum ETFs recorded massive outflows, reflecting investor panic.

• Bitcoin ETFs saw $326.52M in net outflows, despite BlackRock IBIT logging $60.36M inflows.

• Ethereum ETFs fared worse, with $428.52M in outflows. BlackRock ETHA alone lost $310.13M.

Source: SoSoValue

Meanwhile, Metaplanet stock price fell below the value of its own Bitcoin holdings — a stunning reversal for Japan’s “MicroStrategy.” The firm’s shares have collapsed 70% since June, popping what analysts like Mark Chadwick call “a Bitcoin treasury bubble.” Its mNAV slipped to 0.99, signaling it now values the company less than the BTC it holds.

Fear Index Turns Red: What’s Next for Investors?

The Fear and Greed Index shifted dramatically to 38 (Fear), from 70 (Greed) just a week ago. This sharp sentiment reversal reflects shaken confidence after the crypto market crash.

Source: Fear and Greed Index 

With the US government shutdown, its impending reopening, and the crucial FOMC meeting on October 29, macro catalysts will dictate the next move. If the US-China tariff tensions escalate further, or ETF outflows persist, volatility may rise even more.

Conclusion 

This sudden crypto market crash serves as a powerful reminder that global politics, institutional flows, and sentiment can collide overnight. October has always been a month of surprises — and 2025 is no exception. Investors now face gripped by fear, where the next headlines from Washington or Beijing could define the road ahead.

Disclaimer: This is for educational purposes only. Always do your own research before any investment.