Bitcoin plunged more than 12% on Friday after President Trump announced he would impose 100% tariffs on Chinese imports, sparking fears of a new trade war.
The news shocked the cryptocurrency market, wiping out more than $19 billion in liquidation and sparking panic selling among millions of traders.
Bitcoin briefly fell below $105,000 before rebounding slightly.
The plunge reflected wider fears in the market as investors flocked to safe-haven assets amid heightened U.S.-China tensions and uncertainty about economic stability.
But in the face of deep uncertainty, some experts have called on investors to remain calm and show faith in the fundamentals of the flagship cryptocurrency.
Why Bitcoin Could Have a Big Rebound This Week
According to Cryptonews.com, economist Timothy Peterson believes Bitcoin is likely to stage a strong rebound, rising as much as 21% this week.
Looking at historical data since 2013, he points out that October was actually Bitcoin’s second-best month, right behind November, with an average gain of 20.1%.
It is very rare to see a big drop in October. It has only happened four times in the past 10 years, and three of those have resulted in sharp recoveries.
Even though Bitcoin recently fell below $102,000 after President Donald Trump announced new tariffs, Peterson remains bullish.
He notes that while about half of October’s usual gains may already be on the books, the remainder of October still looks favorable to a solid rebound.
Based on Bitcoin’s typical liquidity cycle and market sentiment, analysts expect that the month could end with Bitcoin regaining momentum and breaking through some key resistance levels in the coming weeks.
Why recent crashes are not uncommon
Volatility is just a part of life in the cryptocurrency world. Digital assets don’t just respond to economic headlines. They are also very responsive to social media conversations, regulatory news, and technological developments.
Experts say these fluctuations can be risky, but they open doors for traders and investors who know how to ride the waves.
Historically, October tends to be a difficult month for cryptocurrencies, but these declines often lead to strong rallies as the market finds balance.
Bottom line: The cryptocurrency space is fast-moving, unpredictable, and has great risks, but also potentially great rewards.
There are many factors that contribute to this volatility. First of all, because the market is still relatively young, price discovery is still ongoing, and prices can fluctuate rapidly due to new investors and speculative trading.
Unlike traditional financial markets, cryptocurrencies are not strictly regulated, so the announcement of new policies or legal measures can trigger sharp reactions.
The fact that the cryptocurrency market operates 24/7 only adds fuel to the fire, with no breakers or circuit breakers to cool things down.