Few investors predicted the abrupt reversal in the market’s sentiment for Bitcoin (BTC-USD). Shortly after the U.S. White House announced tariffs on “Liberation Day,” markets treated cryptocurrencies as a haven against the U.S. dollar. Investors flocked primarily to Bitcoin, followed by Ethereum (ETH-USD).
Issues arose when the U.S. dollar’s (USD) weakness ended. The more U.S. President Trump escalated tariffs against more trading partners, the stronger the currency. This theme undermined the BTC rally to all-time highs. Prices peaked at around $124,300 on Oct. 7, 2025. At that level, sellers emerged in droves.
Around the same time, the artificial intelligence euphoria lost momentum. Investors started to question Oracle’s (ORCL) high debt. They doubted that OpenAI had sufficient funds for the long term to fulfill $1 trillion in computing deals. Oracle accounted for $300 billion.
Nvidia (NVDA) deals are more at $500 billion for chips and investments. OpenAI has a purchase deal with Advanced Micro Devices (AMD), where the former would own 10% of the latter.
Circular investments among the tech firms might raise GDP figures. However, this might not sustain investments. That causes valuations in tech firms to drop. It also pressures Bitcoin, since those same investors would sell speculative positions to raise cash.
Your Takeaway
BTC has a history of crashing heavily, creating panic, then rebounding when markets least expect it. This pattern might repeat itself this time around.
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