The cryptocurrency market recorded significant weekly losses during the second week of October, affected by renewed trade tensions between the United States and China. This followed U.S. President Donald Trump’s announcement on Friday of imposing new 100% tariffs on Chinese imports and his pledge to take further punitive measures against Beijing.

This escalation led to a sharp sell-off in the digital assets market, causing market losses exceeding $300 billion in a single day (Friday), amid investor concerns over the widening trade war and its impact on high-risk assets.

Bitcoin’s price fell from levels near $123,000 last week to $112,969, marking an 8% decline. Ethereum dropped by 14%, falling from $4,526 to $3,879 by the end of Friday. Solana lost about 9.7% of its value, settling at $205 after being $227 the previous week. Dogecoin and XRP also recorded sharp weekly losses.

The global market capitalization of cryptocurrencies at the end of the second week of October was approximately $3.88 trillion, down from about $4.30 trillion at the end of the previous week, representing a loss of nearly $420 billion, or a 10% decrease in market value.

The recent decline reflects the cryptocurrency market’s sensitivity to major political and economic developments, especially those related to global trade. Trump’s aggressive policies towards China have revived fears of a new trade war that could weaken investors’ risk appetite and push them towards safe assets like gold, which hit record levels this week.