Why Are Bitcoin and Altcoins Falling?

Bitcoin and altcoin markets are still under selling pressure, as global crypto investors struggle to recover from one of the most severe liquidation waves of the year. Analysts say the sharp drop was triggered by U.S. President Donald Trump’s decision to impose a 100% tariff on Chinese imports, sending shockwaves across both traditional and digital asset markets.

$20 Billion in Liquidations Shake the Crypto Market

Friday’s massive sell-off led to over $20 billion in leveraged liquidations across centralized exchanges (CEXs) and hundreds of millions in DeFi protocols. Data from CoinGlass highlights how quickly the crash unfolded, forcing many traders out of their positions.

At the time of writing, Bitcoin trades around $111,825, Ether (ETH) at $3,829, and Solana (SOL) near $182.22. Experts note that the market may remain weak until CME Bitcoin and stock futures reopen on Sunday evening (U.S. time), which will likely dictate BTC’s next direction.

The steep decline in open interest also reflects a lack of trader confidence, as investors hesitate to re-enter a volatile market. The futures market opening will be a critical indicator of how TradFi (traditional finance) is positioning for the upcoming week.

Trump’s Tariff Decision Sparks Panic

Trump’s tweet announcing the 100% import tariff on China hit social media just two hours before U.S. markets closed on Friday, triggering a sharp reaction. Both stock and crypto markets saw a wave of panic selling, with low weekend liquidity amplifying price declines across CeFi platforms.

According to Ray Salmond, Head of Markets at Cointelegraph, Bitcoin remains in a vulnerable range:

“Based on Hyblock Capital’s liquidation heatmaps, there’s a liquidity pocket between $120,000 and $113,000. Long positions in that area are exposed and easily exploited.”

This range represents short-term support levels for Bitcoin, while technical indicators suggest that $110,000 acts as a key psychological zone.

When Could the Market Recover?

For Bitcoin to regain momentum, open interest must stabilize and investor confidence must return. The tone of Sunday’s CME futures opening will offer crucial insights into market sentiment heading into the week.

Possible short-term scenarios include:

• 1) A strong CME opening could trigger a relief rally.

• 2) A weak opening might lead to another test below $110,000.

• 3) A neutral opening may keep BTC trading sideways for days.

Meanwhile, analyst EndGame Macro pointed out that the current sell-off is deeply connected to broader macroeconomic stress and global liquidity tightening.

While traders await signals from traditional markets, crypto volatility is likely to remain elevated in the coming days. Investors are closely watching U.S. economic data and Federal Reserve comments for clues on the next move.

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