Bitcoin tumbled on Friday, dropping more than 12% after President Trump announced he would impose 100% tariffs on imports from China, raising fears of a new trade war.
The news shocked the crypto market, wiping out more than $19 billion in liquidations and sparking panic selling among millions of traders.
Bitcoin briefly fell below $105,000, but rebounded slightly.
The plunge reflected broader market anxiety as investors rushed into safer assets amid escalating U.S.-China tensions and uncertainty over economic stability.
But in the face of deep uncertainty, some experts are urging investors to remain calm and show some confidence in the fundamentals of flagship cryptocurrencies.
Why Bitcoin could bounce back this week
According to Cryptonews.com, economist Timothy Peterson believes there is a good chance that Bitcoin will make a strong comeback this week and rise as much as 21%.
Looking at historical data dating back to 2013, he notes that October is actually the second-best month for Bitcoin, trailing only November with an average gain of 20.1%.
Significant declines in October are fairly rare. This has only happened four times in the past decade, and three of those times have been followed by rapid recoveries.
Peterson remains optimistic, even though Bitcoin recently fell below $102,000 after President Donald Trump announced new tariffs.
He noted that about half of October’s normal gains may already be on the books, but the rest of the month still looks favorable for a solid recovery.
Given Bitcoin’s typical liquidity cycle and market sentiment, analysts expect Bitcoin to regain momentum and potentially end the month by breaking through key resistance levels within the next few weeks.
Why is the recent crash not uncommon?
Volatility is just part of the cryptocurrency world. Digital assets don’t just react to economic headlines. They are also very sensitive to social media chatter, regulatory news, and technological developments.
Experts say that while these ups and downs can be risky, they also open doors for traders and investors who know how to ride the waves.
Historically, October tends to be an eventful month for cryptocurrencies, but these declines are often followed by strong rebounds as the market regains balance.
Bottom line: The crypto space is rapidly changing, unpredictable, and comes with great risks, but also potentially great rewards.
There are several factors contributing to this increased volatility. First, the market is still relatively young, so price discovery is underway, and new investors and speculative trading can cause prices to move significantly.
Unlike traditional financial markets, cryptocurrencies are not tightly regulated, so the announcement of new policies or legal measures can provoke sharp reactions.
The fact that crypto markets operate 24/7 with no breaks or circuit breakers to calm things down only adds fuel to the fire.
