Recent tensions between the United States and China have intensified the global economic landscape, influencing not only traditional markets but also the booming cryptocurrency sector. Following President Donald Trump’s public threat of implementing a 100% tariff on Chinese imports, financial markets, including Bitcoin and other digital assets, experienced noticeable fluctuations amid fears of trade escalations and geopolitical instability. This development highlights the ongoing impact of international trade disputes on the crypto markets, underscoring cryptocurrency’s role as a possible hedge amid global uncertainties.
Key Takeaways
- •US President Trump confirms the United States is in an active trade war with China, threatening a 100% tariff on Chinese imports.
- •A social media warning from Trump about tariffs caused Bitcoin to drop from approximately $121,560 to below $103,000 in hours.
- •Despite the initial tumult, Bitcoin has shown resilience, with recent slight gains and stable trading amid broader market fluctuations.
- •The trade tensions follow China’s tightening of export controls on rare earth minerals, crucial for semiconductor manufacturing.
- •The crypto market remains sensitive to geopolitical events, reflecting evolving investor sentiment towards global trade conflicts.
Trade War Escalates, Impacting Cryptocurrency Markets
US President Donald Trump publicly confirmed that the United States is engaged in an ongoing trade war with China, following his threat last week to impose a 100% tariff on all Chinese imports. In a statement to White House reporters, Trump asserted, “Well, we’re in one now,” emphasizing that tariffs are a vital component of America’s national security strategy.
JUST IN: President Trump declares the United States is in a TRADE WAR with China
“We’re in one now!”
“We have 100% tariffs.”
“If we didn’t have tariffs, we would have no defense. They’ve used tariffs on us.”pic.twitter.com/o360DtdsaQ
— Eric Daugherty (@EricLDaugh) October 15, 2025
Shortly after Trump’s warning on social media, global financial markets responded, with Bitcoin (BTC) plunging from about $121,560 to below $103,000 within hours — a significant, rapid shift driven by fears of escalating trade tensions. This reaction underscores how geopolitical events continue to influence the sometimes volatile crypto markets, which are increasingly viewed as a hedge against traditional market risks.
Trump also threatened further escalation with a potential 100% tariff on Chinese goods, retaliating against China’s tightening of export controls on rare earth minerals, essential components in the manufacture of computer chips and other high‑tech hardware. While initially volatile, Bitcoin managed to stabilize, with recent data showing a slight increase of 0.1% over the past hour, reflecting cautious optimism among traders.
This ongoing geopolitical discord highlights the vulnerability of crypto markets to world affairs. As trade tensions persist, investors closely monitor developments, with cryptocurrencies increasingly seen as both a refuge and a barometer of global economic stability.