Bitcoin's record-breaking run came to an abrupt halt this week as global policy moves sent shockwaves through digital asset markets. The cryptocurrency plunged below $110,000 following the trade truce between U.S. President Donald Trump and Chinese President Xi Jinping, coupled with a Federal Reserve rate cut that spurred investors to shift toward traditional assets.
The selloff marks a sharp reversal from earlier October highs when Bitcoin reached $124,750. By the final week of the month, it had lost nearly 3.9% of its value, with Ethereum sliding even further - down 7.2% to $3,847 from its October 6 peak of $4,687. Analysts attributed the pullback to short-term profit-taking and diminished speculative momentum after months of steady gains.
Crypto traders had anticipated the Trump-Xi agreement would bolster Bitcoin by signaling geopolitical stability and cross-border liquidity. Instead, the détente reduced demand for decentralized hedges. The Fed's rate reduction added to the downward pressure, making fixed-income assets more attractive in the near term.
Despite the decline, several long-time investors remain optimistic. Rich Dad Poor Dad author Robert Kiyosaki reiterated his bullish outlook, urging followers to hold Bitcoin, Ethereum, and precious metals as protection against what he called "an impending global financial collapse." Historically, November has been Bitcoin's strongest month-posting a 451.2% gain in November 2013-though few expect a rally of that scale.
Market sentiment has also been weighed down by legislative gridlock in Washington. The ongoing government shutdown has delayed progress on the CLARITY Act, a bipartisan bill designed to classify cryptocurrencies as commodities. "Today, one in five Americans owns cryptocurrency," Senator John Kennedy (R-La.) said on October 16, acknowledging that lawmakers still face "regulatory confusion" about how digital assets fit into existing tax and securities frameworks.
Adding political intrigue, the Trump family's growing footprint in the crypto sector continues to draw scrutiny. The family-backed stablecoin USD1, issued by World Liberty Financial-a firm founded by Donald Trump's sons-now holds a $2.97 billion market capitalization and trades across more than 20 exchanges. Analysts say its prominence has made the White House's crypto stance a point of investor speculation.
