Bitcoin News Today: "Crypto Markets 'Eviscerated' as Trump Tariffs Trigger $200B Sell-Off"

U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, effective November 1, 2025, triggered an immediate and severe sell-off in global cryptocurrency markets, erasing nearly $200 billion in value within hours Trump Crashes Crypto Markets With 100% Tariff On China^[2]. The move, framed as retaliation against China's export controls on rare earth metals, sent Bitcoin (BTC) plunging 10% to $107,000 from $122,000, while Ethereum (ETH) and other major altcoins fell 15%-30% Trump Crashes Crypto Markets With 100% Tariff On China^[2]. The total crypto market capitalization dropped from $4.25 trillion to $4.05 trillion, according to CoinGecko, with over $7.44 billion in leveraged positions liquidated within a single hour .

The escalation in trade tensions marked the most aggressive U.S. tariff policy on China since 2019, with Trump also announcing export controls on "any and all critical software" on the same date Bitcoin Drops Below $119K After Trump’s Tariff Threat on China^[5]. This shift from rhetoric to concrete policy triggered a broad "risk-off" retreat across equities, commodities, and digital assets. Bitcoin's decline tested key psychological levels, while altcoins like Solana (SOL), XRP, and Dogecoin (DOGE) underperformed amid heavy selling, with some tokens dropping as much as 40% Trump Crashes Crypto Markets With 100% Tariff On China^[1].

Market analysts attributed the crash to a combination of overbought conditions and the sudden shift in macroeconomic sentiment. Ram Ahluwalia of Lumida Wealth noted that the "Trump news combined with 'overbought' conditions led to a sharp decline," while Zaheer Ebtikar of Split Capital described the altcoin complex as "eviscerated," with prices reverting to levels not seen in over a year Trump Crashes Crypto Markets With 100% Tariff On China^[1]. The sell-off mirrored traditional markets, where the S&P 500 erased $1.2 trillion in value within 40 minutes of Trump's initial announcement Trump’s China tariff sends largest exchanges into emergency mode^[6].

The impact on crypto exchanges was equally severe. Binance, the largest trading platform by volume, reported emergency system strains as massive liquidations unfolded, while Coinbase experienced latency issues during transactions . Coinglass data revealed that over $824 million in leveraged positions were liquidated in 24 hours, with Bitcoin accounting for the largest share of losses Trump’s China tariff sends largest exchanges into emergency mode^[6].

Historical parallels emerged as traders compared the event to the 2020 market crash induced by the COVID-19 pandemic. Prominent trader Bob Loukas described the volatility as "Covid-level nukes," highlighting the unprecedented scale of the selloff Trump Crashes Crypto Markets With 100% Tariff On China^[1]. Market watchers warned of prolonged volatility if China retaliates or if negotiations between the U.S. and China stall before the November 1 deadline.

The trade war's ripple effects extended beyond crypto. Global supply chains for semiconductors, AI, and blockchain infrastructure faced heightened uncertainty, with analysts cautioning that strained technology sectors could deepen macroeconomic instability Trump Crashes Crypto Markets With 100% Tariff On China^[2]. Meanwhile, institutional investors appeared to capitalize on the downturn, with Bitcoin ETFs seeing record inflows despite the price drop .