Global crypto markets faced a brutal selloff on Friday after U.S. President Donald Trump announced sweeping new tariffs on Chinese imports, sending shockwaves through both traditional and digital asset markets.
The administration revealed plans to raise tariffs on Chinese goods by an additional 100%, effectively increasing the total rate to 130% (30% existing + 100% new). The new tariffs are set to take effect on November 1, 2025, sparking a sharp retreat across leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Binance Coin (BNB).
According to analysts, the move reignited fears of a global trade war, dampening investor sentiment and triggering what many are calling one of the most dramatic crypto crashes of the year.
For a detailed breakdown of how trade tariffs affect global markets, see this Investopedia explainer on tariffs and economic impact.
Why Did Cryptocurrencies Plunge After Trump’s Announcement?
Experts say that China’s large investor base in the crypto ecosystem played a key role in amplifying the selloff. Anuj Gupta, Director at Ya Wealth, explained that “Chinese investors are among the biggest holders of cryptocurrencies. Trump’s sudden 100% tariff decision prompted widespread liquidation, leading to intense sell pressure on major digital assets.”
He added that the decline was “on expected lines,” given the strong reaction to the tariff escalation. Gupta predicts further short-term selling in Bitcoin, Ethereum, Solana, and Binance Coin as investors recalibrate their portfolios.
Meanwhile, David Jeong, CEO of Tread.fi, described the event as a “Black Swan moment” for the crypto market. “Many institutional traders were unprepared for such a sudden policy shock,” he said. “Given how leveraged perpetual futures are structured, the resulting liquidations were massive.”
For more on how institutional leverage affects crypto markets, check out CoinDesk’s guide to crypto futures trading.
Bitcoin Price Outlook: Can It Hold Above $100K?
Following the crash, Caroline Mauron, co-founder of Orbit Markets, urged investors to maintain tight stop-loss orders. “The next major support for Bitcoin is around the $100,000 mark. If it breaks below this level, it could signal the end of the current three-year bull cycle,” she warned.
Data from CoinMarketCap showed the global crypto market cap plunged to $3.74 trillion, down from $4.30 trillion just a day earlier. Trading volume also surged to $490 billion, reflecting panic-driven exits.
By Friday’s close, Bitcoin fell 13.15% to $105,505, while its market capitalization slipped to $2.15 trillion, accounting for about 59% of the total crypto market cap.
$19 Billion Wiped Out — Largest Crypto Liquidation in History
According to a Bloomberg report, more than 1.6 million traders saw losses exceeding $19 billion within 24 hours — marking the largest liquidation event in crypto history. Over $7 billion worth of positions were sold within a single hour of trading after Trump’s announcement on October 10.
For in-depth data on crypto liquidations and trader statistics, see Coinglass’s real-time liquidation tracker.
The Bigger Picture: Trade Tensions Meet Digital Volatility
Analysts at CNBC Markets suggest that the combination of geopolitical tensions and overleveraged crypto trading could spark more turbulence in the coming weeks. As global investors digest the full implications of Trump’s tariff escalation, cryptocurrencies may continue to see high volatility and sharp corrections.
Still, long-term believers argue that the current dip could present buying opportunities once markets stabilize — especially if inflation cools and monetary policy eases.
Bottom Line
Trump’s renewed tariff war with China has sent shockwaves far beyond traditional markets, exposing just how interconnected global trade and digital assets have become. While short-term volatility remains a concern, seasoned investors are watching key support levels closely — particularly Bitcoin’s $100K threshold — to gauge whether this is a temporary correction or the start of a deeper crypto winter.
For ongoing updates on cryptocurrency market movements and expert insights, visit CoinDesk or Bloomberg Crypto.
