Crypto Sell-Off After Trump's Tariff Threats

Bitcoin plunged from a record peak above $126,000 in early October to roughly $103,000–$107,000 this week, pushing market sentiment into 'Extreme Fear'. The sell-off produced massive forced liquidations—estimates range from about $1–1.2 billion in the last 24 hours to as much as $19 billion across last week's crash—primarily as leveraged positions unwound. JPMorgan and exchange data indicate the selling was driven largely by crypto-native and retail/momentum traders on perpetual futures and offshore venues, while institutional ETF and CME futures activity remained comparatively stable. The immediate catalyst was President Trump's tariff threats and related trade headlines amid broader risk-off moves that also lifted safe havens. The rout rippled across altcoins—ETH, SOL and TRX fell sharply, with TRX testing support near $0.31—and technical indicators show oversold conditions. Some analysts see potential for a rebound and liquidity rotation if flows return, with bullish scenarios projecting higher targets, but short-term downside risk remains significant.