Crypto market bloodbath! Bitcoin, Ethereum tank after Trump impose 100% tariff on Chinese imports.

By Admin

11 Oct, 2025

The global crypto market witnessed a dramatic collapse after U.S. President Donald Trump announced a 100% tariff on all critical software imports from China, escalating tensions between the world’s two largest economies. The move, seen as a retaliatory measure following China’s restrictions on rare earth mineral exports, sent shockwaves through both traditional and digital markets   with cryptocurrencies facing one of their sharpest single-day declines in months.

Bitcoin and Ethereum Lead the Fall

Bitcoin (BTC), the world’s largest cryptocurrency, slumped over 8%, falling to $1,11,000 levels, while Ethereum (ETH) plunged more than 15% to below $3,800. As per data from CoinMarketCap, Bitcoin dropped 7.60% to $1,12,592.31 and Ethereum fell 12.24% to $3,845.92 at around 6:10 am.

Analysts pointed to massive liquidations worth $9.5 billion following Bitcoin’s failure to hold the crucial $1,20,000 support level. This wipeout further deepened investor panic, pushing the overall crypto market capitalization into the red zone.

Top 5 Tokens – A Market in Red

By 6:45 am, the leading digital assets showed the following declines:

• Bitcoin (BTC): Down 8.40% to $111,841.14 | Market Cap: $2.23 trillion (-8.12%)
  
  

• Ethereum (ETH): Down 15.62% to $3,792.31 | Market Cap: $456.97 billion (-13.81%)
  
  

• Tether (USDT): Down 0.1% to $1 | Market Cap: $178.97 billion (-0.28%)
  
  

• Binance Coin (BNB): Down 6.6% to $1,094.09 | Market Cap: $152.27 billion (-12.91%)
  
  

• XRP: Down 22.85% to $2.33 | Market Cap: $140.19 billion (-16.31%)
  
  

Even traditionally stable coins and top-tier tokens could not escape the market carnage, signaling a broad-based investor sell-off.

What Triggered the Crash? Trump’s Explosive Trade Announcement

The crypto meltdown followed Donald Trump’s announcement on his social media platform, Truth Social, where he condemned China’s new trade policies on rare earth exports   crucial materials used in high-tech manufacturing.

Trump wrote:

“It has just been learned that China has taken an extraordinarily aggressive position on Trade... effective November 1st, 2025, they will impose large-scale Export Controls on virtually every product they make.”

Labeling China’s move as “a moral disgrace,” Trump declared that the United States will respond with a 100% tariff on all Chinese imports and export controls on any and all critical software starting November 1st, 2025   or sooner if China escalates further.

Market Reaction: Panic and Uncertainty

The crypto community reacted swiftly to the policy shock. Traders feared that higher tariffs and tighter trade restrictions could disrupt global technology supply chains   particularly those involving semiconductors, AI systems, and blockchain hardware, which rely heavily on Chinese components.

As risk appetite evaporated, investors rushed to liquidate crypto holdings, preferring safer assets amid geopolitical uncertainty. Analysts also noted that algorithmic trading systems amplified the selloff, triggering automated liquidations across exchanges.

Outlook: What’s Next for the Crypto Market?

While short-term volatility is likely to persist, experts believe that the crypto market could find stability once global trade tensions ease. However, if the U.S.–China dispute intensifies, digital assets may continue to face downward pressure, especially those tied to global tech and blockchain ecosystems.

For now, the sentiment remains fragile   and investors are watching closely as both nations navigate this escalating trade standoff.

In summary:
The crypto crash underscores how macroeconomic and geopolitical policies can profoundly influence decentralized markets. As the U.S.–China trade war enters a new phase, digital currencies are once again proving that no asset class is entirely immune to global politics.