U.S. President Donald Trump reignited trade war tensions on Friday with the announcement of sweeping 100% tariffs on all Chinese exports, triggering panic across global markets — and crypto wasn’t spared.
The fallout was immediate. Bitcoin (BTC) plunged to a three‑month low of $102,000 on Binance’s futures pair, with total liquidations across the crypto market crossing $9.4 billion, according to data from CoinGlass. Over $7.1 billion of those were leveraged long positions, as risk appetite crumbled under geopolitical pressure.
Leading altcoins followed suit. Ether (ETH) dropped below $3,500, while Solana (SOL) lost over 14 % of its value, dipping under $140. The total crypto market cap contracted by over 11 % within 24 hours, falling to $3.64 trillion at the time of writing.
Trade War Tensions Hit Rare Earth Supply Chain
Trump’s announcement came in response to China’s stated intention to impose export controls on rare earth minerals — key components for advanced electronics, semiconductors, and mining infrastructure.
“These tariffs are a direct response to hostile trade aggression,” Trump wrote on Truth Social. “China’s chokehold on rare earths will not be tolerated.”
Industry analysts fear that strained supply chains for chips and high‑performance computing components could impact crypto mining efficiency and access to AI infrastructure — two sectors increasingly intertwined with blockchain innovation.
“Market Overreaction May Be a Long‑Term Opportunity”
Despite the rapid sell‑off, some analysts argue the correction could present a strategic entry point for long‑term investors.
“Historically, macro shocks like these tend to create price dislocations,” said crypto market analyst Leo Matthews. “Once the dust settles, quality assets often rebound stronger.”
Top 5 Altcoins to Watch Ahead of 2026
While volatility remains high, here are five altcoins that analysts suggest could offer upside for long‑term investors — assuming fundamentals hold and adoption continues:
- Ethereum (ETH) — Still the dominant smart contract platform. Upcoming L2 integrations and restaking economy could unlock new value.
- Solana (SOL) — Despite short‑term drops, it remains one of the fastest‑growing developer ecosystems.
- Chainlink (LINK) — Its role as the leading oracle network is increasingly vital for real‑world asset tokenization.
- Polkadot (DOT) — Positioned for cross‑chain innovation, especially as multi‑chain interoperability becomes essential.
- Minativerse (MNTC) — A rising contender in the metaverse and gaming sectors. While speculative, the project is gaining traction with early partnerships and community growth.
“Small‑cap tokens like MNTC carry higher risk, but also asymmetric upside,” said Matthews. “If the project delivers on its roadmap, it could benefit from broader adoption in the immersive internet space.”
What’s Next?
Markets are expected to remain volatile in the coming days as traders digest the full implications of U.S.–China tensions. But for investors willing to stomach short‑term pain, the current downturn might offer a unique entry window.