Crypto News Today: Bitcoin and Ethereum Prices Drop After Trump's Recent Trade Spat with China

Friday was rough for crypto markets. President Donald Trump rolled out new trade measures against China, and the fallout was immediate. Bitcoin tumbled more than 12%, dropping from its recent high above $125,000 to under $113,000. Ethereum slid over 5%, landing around $3,800, right after Trump announced 100% tariffs on Chinese imports.

We just saw the largest crypto liquidation event ever. In 24 hours, over $19 billion in leveraged positions vanished, leaving about 1.6 million traders reeling. Bitcoin took the biggest hit, with $5.34 billion in liquidations, and Ethereum followed at $4.39 billion.

Trump’s tariff move, set for November 1, really turned up the heat in the US-China trade standoff. Doubling tariffs on Chinese goods and adding new export controls on software sent shockwaves through both traditional and digital asset markets. It’s a reminder of how jumpy crypto prices can get when geopolitics flare up.

Key Takeaways

• Trump’s 100% tariff announcement on Chinese goods triggered sharp drops in Bitcoin and Ethereum on Friday

  
  

• The crypto market saw its biggest liquidation ever, with over $19 billion in positions wiped out

  
  

• The trade war escalation rattled both traditional and digital asset markets

  
  

• Impact of Trump's China Trade Actions on Bitcoin and Ethereum

Trump’s 100% tariff announcement on Chinese imports kicked off a wave of crypto liquidations. Bitcoin and Ethereum led the sell-off as traders scrambled to get out of risky positions with tensions rising.

Overview of New US Tariffs on Chinese Exports

Trump’s new policy doubles tariffs on Chinese goods starting November 1. That means an extra 100% tariff on imports from China.

He called it a response to what he sees as China’s “aggressive trade position,” especially after Beijing started restricting exports of rare earth minerals—key stuff for tech manufacturing.

The administration also slapped on new US export controls for software, ramping up the economic showdown between the world’s two largest economies.

Key Policy Changes:

• 100% tariff increase on Chinese imports

  
  

• New export controls on critical software

  
  

• Response to China’s rare earth mineral restrictions

  
  

• Effective date: November 1

Markets immediately started pricing in the possible fallout from this trade escalation. The tariff news reignited old fears of a deeper US-China trade war.

Immediate Reactions in Cryptocurrency Markets

Crypto markets felt the shock instantly after Trump’s tariff move. The reaction showed just how quickly digital assets can swing when politics get messy.

Coinglass reported that crypto markets faced their largest liquidation event ever. In just 24 hours, over $19 billion in leveraged positions disappeared.

This liquidation wave hit about 1.6 million traders worldwide. Some analysts think the real number could be even higher—possibly over $30 billion—since exchanges don’t always report every order right away.

Market Impact by Numbers:

• Total liquidations: $19+ billion

  
  

• Affected traders: 1.6 million

  
  

• Time frame: 24 hours

  
  

• Potential total: $30+ billion

Binance, the world’s biggest crypto exchange, only logs one liquidation order per second. So, the actual damage could be way more than official numbers show.

Bitcoin and Ethereum Price Declines and Liquidations

Bitcoin led the charge down, dropping over 12% from its recent all-time high. It fell from above $125,000 to below $113,000 in Friday’s session.

Bitcoin’s liquidation losses totaled $5.34 billion. That price drop wiped out a ton of leveraged long positions from traders who’d bet on more gains.

Ethereum, the second-biggest crypto, fell more than 5% after the tariff news. ETH liquidations hit $4.39 billion during the chaos.

Liquidation Breakdown:

• Bitcoin: $5.34 billion

  
  

• Ethereum: $4.39 billion

  
  

• Solana: $2.0 billion

  
  

• Other altcoins: $1.5 billion

The tariff hike sent shockwaves into stocks and oil, too, as investors started rethinking risk with the trade conflict heating up.

Traders now have their eyes glued to the next moves in the trade war. If this week proved anything, it’s that crypto stays hypersensitive to geopolitical drama and sudden policy shifts.

Broader Market Effects and Ongoing Uncertainty

Trump’s trade fight with China is sending ripples through global financial markets. Investors are yanking money from riskier assets as tariff threats keep escalating. The uncertainty stretches well beyond crypto, hitting sectors that depend on Chinese exports and supply chains.

Global Financial Markets and Investor Sentiment

Stock markets got hammered after Trump’s tariff announcements. The Dow sank 800 points, and the S&P 500 and Nasdaq both took sharp hits as Treasury yields jumped.

Bond markets are flashing warning signs about the trade fight’s impact on growth. Investors are shifting cash out of risk assets like stocks and crypto, moving it into safer government bonds instead.

The Fed’s decision to keep interest rates steady offered a little support, but trade tensions are still putting a damper on investor confidence everywhere.

Copper prices hit record highs after talk of potential 25% tariffs on copper imports. That shows just how quickly commodities can react to trade news.

Market volatility has spiked, with traders constantly adjusting positions as the trade dispute unfolds.

Export Controls and Tech Supply Chain Risks

Export controls on Chinese tech products are a big headache for global supply chains. Tons of companies still rely on Chinese manufacturing for semiconductors and electronic parts.

If trade restrictions keep growing, tech firms could face major disruptions. More businesses are scrambling to diversify suppliers and not get caught flat-footed.

The 100% tariff threat could force a major shakeup in global trade relationships. Companies are already eyeing manufacturing options outside China.

Software and hardware makers are especially exposed to these trade shocks. Some critical components need specialized Chinese manufacturing, and you can’t just swap that out overnight.

Rare Earth Minerals and Critical Software Ramifications

China controls about 80% of the world’s rare earth mineral production. These materials are the backbone for making smartphones, electric cars, and gear for renewable energy.

If trade restrictions kick in, getting ahold of these minerals could get tough fast. Sure, there are other sources out there, but honestly, ramping them up would take years.

If trade tensions heat up, some critical software systems might get caught in the crossfire. Tons of business and consumer apps depend on components or services from Chinese companies.

The tech world leans hard on Chinese rare earth minerals, and that’s a real weak spot. Higher prices or shortages could ripple through everything—defense, gadgets, you name it.