Bitcoin’s price slipped below $112,000 on Monday as renewed U.S.–China tensions rattled global markets. The decline followed comments from U.S. President Donald Trump, who threatened to ban imports of cooking oil from China reigniting fears of a full-scale trade war between the world’s two largest economies.
Trump’s Comments Spark Market Jitters
On October 14, President Trump warned that the U.S. could restrict cooking oil imports from Beijing in retaliation for China’s ongoing boycott of American soybeans. The remarks came after weeks of tariff-related threats and countermeasures that have stoked geopolitical uncertainty and weighed on investor sentiment.
The reaction was swift. Global risk assets sold off, with the Nasdaq dropping 3.5%, commodities turning volatile, and safe-haven demand rising for gold and U.S. Treasuries.
Bitcoin often traded as a risk-on asset during times of economic optimism fell in tandem with equities, losing about 1.3% in the past 24 hours to trade near $111,925 at press time.
Trading Activity Surges Amid Volatility
Despite the decline, market activity has increased. According to CoinGlass data:
- Bitcoin’s 24-hour spot volume jumped 35% to $90 billion.
- Derivatives turnover rose nearly 40% to $144 billion.
- Open interest slipped 2% to $72.5 billion, suggesting traders are closing leveraged positions rather than opening new ones.
This type of deleveraging typically reduces short-term volatility, but it can also leave the market vulnerable to sudden, sharp moves.
Broader Sell-Off Adds Pressure
The renewed tensions come just a week after one of the largest crypto liquidations in history, when $19 billion in long positions were wiped out in 24 hours during the market’s flash crash.
Another $600 million in leveraged trades were flushed over the past day as traders continued to unwind risk ahead of upcoming macro events.
Investors are now focusing on the Federal Reserve’s meeting on October 29–30, where markets are pricing in an 89% chance of a 25 basis point rate cut. Still, hawkish signals from recent Fed minutes, pointing to persistent inflation and strong employment data, have dampened optimism for a major easing cycle.
A stronger U.S. dollar and higher Treasury yields have also intensified the pressure on Bitcoin, which tends to underperform during periods of tight liquidity.
Technical Analysis: Weakness Below Key Levels
Bitcoin’s technical outlook remains soft in the short term.
The cryptocurrency has fallen below its 10-, 20-, and 30-day EMAs, indicating near-term bearish momentum. Meanwhile, long-term support lies around $108,000–$107,000, aligning with the 200-day moving average — a level bulls are watching closely.
Momentum indicators show continued caution:
- The RSI sits at 43, signaling fading strength but not yet oversold conditions.
- The MACD and momentum both remain negative.
- The Average Directional Index (ADX) at 25 indicates a moderate but persistent downtrend.
- Bollinger Bands suggest cooling but elevated volatility meaning sharp swings remain possible.
If Bitcoin can reclaim $115,000–$116,000, it could open the path to $123,000. Failure to hold the $107,000–$108,000 support zone, however, risks a deeper pullback toward $104,000 or even $100,000.
“Bulls need stronger volume on rebounds,” analysts note. “Otherwise, bears could push for another flush down toward the 200-day average.”
The Bottom Line
Bitcoin’s decline below $112K underscores how macroeconomic and geopolitical headlines continue to dictate crypto market sentiment.
With trade war tensions resurfacing, rate cut uncertainty, and recent liquidation waves still fresh, traders appear hesitant to reenter with high leverage.
Still, as volatility cools and liquidity stabilizes, Bitcoin could find support near the 200-day average potentially setting up for a recovery if macro risks ease in the weeks ahead.
