Stocks and crypto sold off together to close the week, but digital assets took the sharper hit. Bitcoin fell 8.4% to about $104,800 late Friday, while Ethereum slipped 5.8% to roughly $3,637.
By comparison, the S&P 500 dropped 2.7% and the Nasdaq Composite lost 3.6%, underscoring how crypto once again amplified the shift to risk off.
President Donald Trump said the United States will raise tariffs on Chinese imports to 100% and tighten export controls on critical software.
The announcement rattled global assets and knocked the legs out from a rally that had pushed Bitcoin to a record above $125,000 just last weekend.
Equities erased their weekly gains as traders rotated toward cash and the safest parts of the Treasury curve.
The move was a stark reminder that the asset class still behaves like high beta risk. Bitcoin’s daily loss on Friday exceeded the declines in broad equity benchmarks, and Ethereum’s slide also outpaced the S&P 500.
This pattern has been common in macro-driven pullbacks, where leverage and momentum unwind quickly across digital asset venues while cash generating equities tend to hold up somewhat better.
In September, the market’s breadth improved, altcoins rallied, and listings chatter returned that included a burst of developments such as Gemini goes public on Nasdaq and, days later, Nasdaq doubles down on crypto with a $50m Gemini IPO stake, both of which fed the narrative that crypto is moving further into mainstream market infrastructure.
As recently as mid September, Nasdaq hits new all-time high, a reminder of how quickly sentiment can flip when policy risk intrudes.
The speed of Friday’s move, not just the size, will keep risk managers focused on positioning and liquidity through the next macro print.
A month earlier Altcoin rally heats up during a broadening upswing, which left fast money leaning long that positioning can either compound a drawdown through forced selling or fuel a snapback.
