What happened? Crypto surged to record highs and then dropped after tariff news.
Bitcoin blasted to a record $126,080 in early October and lifted many altcoins and meme tokens. That optimism reversed quickly after Trump announced a 100% tariff on Chinese goods, triggering a steep crypto sell-off and a shift to risk-off trading ahead of the Fed’s FOMC meeting. Many analysts see the drop as a healthy reset that flushes excess leverage and weak hands, potentially setting the stage for a stronger bull run later.
Who does this affect? Traders, institutions, major crypto projects and payment platforms.
Retail traders with high leverage were hit hardest, while institutional players are pausing for ETF and regulatory clarity. Major coins like XRP, Solana, and Dogecoin, plus hyped presales like Bitcoin Hyper, could see big moves as ETFs, regulation, and adoption headlines flow through the market. Exchanges, payment platforms, and projects with real-world use cases will feel the impact most, since adoption news and regulation determine where capital flows.
Why does this matter? Approval of ETFs, regulation, and macro headlines could trigger major inflows and reshape the market.
If spot ETFs get approved and regulation becomes clearer, expect large institutional inflows that could drive prices much higher across large-cap altcoins and Bitcoin. The current correction may actually improve long-term market health by removing weak hands and creating a cleaner foundation for a major upward run. That means traders and investors should watch ETF decisions, the FOMC, and geopolitics closely because those catalysts will likely decide whether this pause becomes the calm before a big rally or a longer downturn.