Trump’s 100% China Tariffs Trigger Bitcoin’s 13% Slump
On October 10, President Donald Trump announced a surprise 100% tariff on all Chinese imports, citing China’s proposed export controls on rare earth minerals. The move triggered a historic $10 billion crypto liquidation, with open interest wiped out and Bitcoin plunging over 7.6%. By October 17, Trump defended the tariffs as necessary despite calling them “unsustainable.” That day saw crypto markets drop more than 5%, with Bitcoin leading a 5% daily slump and extending its weekly loss to 13%. The total crypto market cap fell 5.75%, and the top 20 tokens slid around 5%. Traders should brace for heightened volatility as geopolitical tensions escalate. Experts warn that the ongoing trade war, including new U.S. export controls on critical software, will pressure economic growth and high-growth assets like crypto. Trump has signaled he may lift the tariffs if China reverses its export curbs by November 1.
Bearish
Trump’s 100% China tariff news ignited a historic $10 billion crypto liquidation and sent Bitcoin tumbling over 13% in a week. In the short term, forced sales and risk aversion are likely to maintain downward pressure on Bitcoin as traders face margin calls and thin liquidity. Over the longer term, unresolved U.S.-China trade tensions and potential further export controls on technology inputs suggest continued volatility and downside risk for Bitcoin until policy clarity emerges.