why is crypto crashing right now

The current crypto market crash in October 2025 is primarily caused by U.S. President Donald Trump's announcement of aggressive new tariffs, reportedly up to 100%, on Chinese technology imports. This move triggered a sharp sell-off across global markets, including cryptocurrencies, which are highly leveraged and thus much more volatile than traditional equities. The tariff announcement caused Bitcoin to briefly fall below $105,000 and altcoins to drop 70–80%, resulting in over $19 billion worth of leveraged long positions liquidated within 24 hours. The crypto crash was further intensified by liquidation cascades on exchanges, deleveraging by market makers, and widespread panic selling among retail traders. Additional factors contributing to the crash include geopolitical trade tensions due to the U.S.–China trade war fears, ETF outflows reducing market depth, a stronger U.S. dollar and rising bond yields, and a lack of bullish market catalysts to offset the fear and risk-off sentiment. Federal Reserve Chair Jerome Powell's silence on potential rate cuts added to the uncertainty, reinforcing the sell-off sentiment. This event illustrates the systemic fragility of the crypto market, which is highly sensitive to macroeconomic shocks and over-leverage, leading to high volatility and large-scale liquidations during crises. Despite the crash, some institutional interest and whale accumulation suggest a potential longer-term recovery if macro tensions ease. In summary, the crypto crash right now is driven by Trump's 100% tariffs on Chinese tech imports, cascading liquidations from excessive leverage, geopolitical trade war fears, and broader macroeconomic uncertainty.