‘Uptober has been placed on ice’ as Trump’s trade deals loom large over crypto

Core Insights - The crypto market is experiencing significant volatility, particularly in October, which is traditionally seen as a bullish month, due to renewed US-China trade tensions [1][4] - Bitcoin has seen a decline of over 12% after reaching an all-time high above $126,000, negatively impacting the broader market [1][3] - Recent market rebounds are viewed as temporary and driven by short-covering rather than genuine improvements in trade relations [2][4] Trade Tensions - The Chinese commerce ministry has announced enhanced restrictions on rare earth metal exports, which are crucial for various industries [2] - US President Trump threatened a 100% tariff on Chinese imports, causing turmoil in global markets, including crypto [3] - The current 90-day tariff truce between the US and China is set to conclude soon, with potential new tariffs of 30% on Chinese imports and 10% on US imports into China [5] Market Reactions - Spot Bitcoin exchange-traded funds have experienced outflows exceeding $362 million, while spot Ether ETFs saw outflows of $428 million [3] - Analysts predict that upcoming tariff news will significantly influence market volatility as both countries seek leverage [6]