QCP Capital, a firm specializing in cryptocurrency analysis, has evaluated the intense market fluctuations following US President Donald Trump’s decision to impose 100% tariffs on imports from China.
The heightened tensions sent shockwaves through global markets, leading to an unprecedented liquidation event in the cryptocurrency sector, according to the company.
In their report, QCP Capital noted that Bitcoin (BTC) briefly dipped to $102,000 before rebounding to $112,000. During this period of volatility, leveraged positions worth $19 billion were liquidated—a record-breaking event in crypto history.
The most significant price swings occurred on Binance. The report highlighted that USD prices plummeted to $0.65 and wBETH was trading at a 90% discount compared to its ETH counterpart. BNSOL also experienced a dramatic drop of over 80%. Other major exchanges did not witness such extreme volatility.
QCP Capital suggested that these drastic price changes on Binance might indicate a potential coordinated attack. They pointed out that Binance had recently announced system updates for these assets which could have created a “window of vulnerability.”
This market turmoil followed escalating tensions between the US and China. Trump accused China of “attempting to hold the world hostage,” while announcing steep tariffs and new export restrictions on critical software from China. In response, reports suggest China is preparing export limitations on rare earths and other industrial materials starting November 1st.
Consequently, global stock markets suffered: Nasdaq dropped by 3.5%, while S&;P 500 fell by 2.7%. Short-term volatility surged within crypto markets as BTC’s one-week implied volatility (ATM) soared up to 98 before settling back at around 50 when conditions partially stabilized.
Later during the day came some relief when US Vice President JD Vance stated they are open for reasonable negotiations with China—this eased selling pressure prior Asian session commencement although QCP Capital cautioned liquidity remains fragile along with elevated policy risks keeping investors wary.
“While stabilization may occur temporarily now,” commented QCP Capital “China’s forthcoming actions will steer direction over upcoming weeks.”
*This does not constitute investment advice.