Bitcoin Faces Rejection at $116,000 as Market Reacts to Tariff

The drop in Bitcoin prices from $116,000 surprised many traders as they anticipated another bullish breakout in Bitcoin prices. After trading for a few days at that price, the backtracked, which triggered flooding of liquidations on almost all major exchanges. This episode proved how delicate the market sentiment is, as traders begin processing other economic risks. 

This pullback definitely rattled the large crypto market, with many huge cap altcoins also having a rough day, in the past few hours, such as Ethereum, Solana , and BNB. Investors targeting short-term gains in crypto assets are now looking stop and assess what affect the market volatility is doing to pricing, with no end in site.

Much of the volatility relates to tariff uncertainties that are brewing and continuing. The broader geopolitical tensions and associated trade restrictions have made risk assets such as crypto assets exceedingly sensitive in price action flows. Before there is a better understanding of how global trade relations will resume. Both institutional and retail traders will likely remain cautious in their actions.

$BTC was rejected at $116,000 and moved back down quite aggressively.

Other altcoins also dropped significantly over the last few hours.

There’s still a lot of uncertainty due to the tariff threats.

The market will continue moving in all directions until this uncertainty… pic.twitter.com/olzwB8Zney

— Crypto | Stocks | Freedom (@Wealthmanagerrr) October 14, 2025

Bitcoin’s Struggle Near $116,000 Resistance

Bitcoin has been experiencing resistance in the $116,000 price region for weeks, but each time it met strong selling pressure. Analysts indicate that whales have been distributing their holdings near the level, adding sell-side pressure to the price momentum.

As selling increased, we saw a rapid increase in daily volume, indicative of panic sellers pushing price lower. More than $400 million in liquidations were witnessed in the market. This shows how overextended and overleveraged traders were caught off guard. The rejection of $116,000 as support shows that it has become a significat psychological and technical level to the bulls trying to regain footing.

Altcoins Feel the Ripple Effect

Altcoins once again took their cues from Bitcoin as most of the larger tokens fell 5–10% in less than an hour. Ethereum dropped briefly under $3,000 before rebounding some. Solana slipped below $140. Meme coins and low-cap tokens experienced greater losses, underscoring the volatility in the asset class.

Currently, investors appear to be deferred from taking on a large position until Bitcoin begins to stabilize. The relationship between Bitcoin and altcoins is still tightly correlated so until Bitcoin establishes a sustainable uptrend it will not engender confidence in the cryptocurrency market overall.

The Role of Tariff Uncertainty

A lot of today’s volatility has been driven by headlines on the global economy. Investors have been spooked by reports of new trade restrictions and possible escalation of tariff updates. This uncertainty surrounding tariffs has created a risk-off attitude towards many asset classes including equities, commodities and digital assets. 

As speculative investments, cryptocurrencies tend to react sharply to macro and political uncertainties. Traders and investors who were using Bitcoin as an alternative haven may have to rethink their new realities. In the interim, the global markets will continue to range between confidence and fear until policy concerns settle.

What Comes Next for Crypto Traders

The next several days will be essential for understanding if this correction is something that will quickly pass or if we will see a deeper pullback. Investors will be watching closely for updates on the face of reality in global trade negotiations, inflation reports and central bank meetings. Depending on the updates, they will either temper volatility in the crypto market or make it worse. 

Long-term investors should use this volatility for an opportunity to not panic. While there is negative sentiment, this has a way to provide entry points if you have a plan of action.