October 13, 2025
By Anjali Kochhar
The world watched in disbelief as a single political move shook the entire crypto market. Former U.S. President Donald Trump’s shocking announcement of a 100% tariff on Chinese goods sent Bitcoin spiraling below $110,000, wiping out billions in hours and turning the market into a sea of red. What was meant to be a power play in global trade quickly became a nightmare for crypto investors.
Within minutes of Trump’s statement, Bitcoin’s price on Binance futures crashed to around $102,000, its steepest drop in months. On major exchanges like Coinbase, it hovered near $107,000 as panic gripped traders. Market data revealed a staggering $9.4 billion worth of crypto positions were liquidated in just 24 hours, including $7 billion in long trades. Ethereum plunged toward $3,500, while Solana tumbled under $140, deepening the market’s chaos.
The tariff move came in response to China’s decision to impose export controls on rare earth materials, critical components for semiconductors and advanced electronics. The U.S. viewed this as a direct threat to its tech dominance, and Trump’s retaliatory tariffs instantly escalated tensions. Economists fear this could reignite a full-scale trade war between the world’s two biggest economies, creating ripple effects across global markets.
Crypto bore the brunt of the shock as investors rushed to secure funds amid uncertainty. With risk appetite shrinking, the total crypto market capitalisation fell nearly 12%, landing at roughly $3.6 trillion. Analysts say this episode is a reminder that digital assets, while independent of traditional systems, remain deeply tied to global economic and political sentiment.
What began as a trade threat has now turned into a full-blown financial storm. If China strikes back or tensions escalate, Bitcoin and other cryptocurrencies could face even deeper corrections. But if history has taught the crypto world anything, it’s that volatility often breeds opportunity.
For now, all eyes are on Washington and Beijing because one more headline from either side could decide where Bitcoin goes next: another crash or a shocking rebound.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
