This Friday, Donald Trump announced 100 % tariffs on all Chinese products, in response to a commercial offensive from Beijing. The reaction was swift, as bitcoin dropped below 110,000 dollars, falling to 102,000 dollars on Binance, its worst performance since the end of June. The crypto market thus turned red in widespread panic.
In brief
- •Donald Trump reignites the trade war with the announcement of 100 % tariffs on all Chinese products.
- •Bitcoin reacts immediately, dropping to 102,000 dollars on Binance, its lowest level since late June.
- •The entire crypto market turns red, with more than 9.4 billion dollars of positions liquidated in 24 hours.
- •The crypto sector could enter a new phase of uncertainty, at the intersection of geopolitics and digital sovereignty.
A brutal drop fueled by panic
The crypto market, affected by trade tensions, suffered a sharp decline triggered by a statement from Donald Trump. In a message posted on his platform Truth Social, the American president accused China of exploiting a dominant position on rare earths, capital materials for the technology and military industries.
The American president declares: “We just learned that China has taken an extraordinarily aggressive stance on trade, sending an extremely hostile letter to the world, indicating that starting November 1st, 2025, they will impose massive export controls on practically every product they manufacture.” In response to this decision, Trump announces that the United States will apply a 100 % tax on all imported Chinese products, a measure that revives the specter of a new trade war with potentially profound economic implications.
The crypto market’s reaction was immediate and violent. Bitcoin plunged to 102,000 dollars on Binance, an unprecedented level since the end of June. The BTC/USD spot pair on Coinbase hit an intraday floor at 107,000 dollars. The domino effect on the market was amplified by a wave of massive liquidations:
- •9.4 billion dollars of positions liquidated in 24 hours;
- •7.15 billion dollars in leveraged long positions;
- •Ether (ETH) fell to 3,500 dollars;
- •Solana (SOL) dipped below 140 dollars.
This large‑scale correction shows how vulnerable the crypto market, still largely dominated by leveraged derivatives, remains to even the slightest geopolitical shock. Friday’s episode once again illustrates the degree of interconnection between the political sphere and crypto volatility.
A geopolitical escalation that revives the specter of a trade war
Beyond the numbers, the displayed political intentions worry investors. In another part of his publication, Trump showed open hostility to any dialogue with his Chinese counterpart.
“There is no reason to talk with Xi Jinping“, he wrote, while affirming that the United States possessed “twice as many elements as those China monopolizes“. These remarks mark a rhetorical turning point, distancing any prospect of diplomatic de‑escalation.
The tone is set, as the president adopts a protectionist stance, potentially announcing a new era of economic confrontation between the two main world powers.
Market analysis confirms that this change is beginning to deeply modify expectations. Thus, the mere threat of a new wave of tariffs was enough to bring bitcoin below 110,000 $, while the entire crypto market turned red.
Beyond the fall in bitcoin prices and other cryptos, the macroeconomic outlook darkens. A rise in protectionism could lead to a slowdown in global trade, further disruptions in supply chains, and a generalized increase in market volatility. In this context, speculative assets like cryptos become particularly vulnerable.