Bitcoin News Today: Rare Earths Spark Trade War Fallout: Crypto Markets Plummet in $19B Liquidation Crisis

The U.S. cryptocurrency market experienced a severe sell-off following Donald Trump's announcement of a 100% tariff on Chinese imports, effective November 1, 2025, and accompanying export controls on critical software. The move, framed as a response to China's export restrictions on rare earth minerals, triggered a global risk-off sentiment, with Bitcoin (BTC) plummeting to $102,000 on Binance, a three-month low, and Ethereum (ETH) dropping 12% to $3,500. Total crypto liquidations surged to $19.1 billion in 24 hours, according to CoinGlass, marking what the firm described as the largest liquidation event in crypto history Cointelegraph^[1].

The tariffs, announced via Truth Social, cited China's "extraordinarily aggressive" trade stance and its plan to impose export controls on "virtually every product they make" starting November 1. This escalation reignited fears of a full-scale trade war, with analysts noting that rare earth minerals are critical for semiconductor production, AI, and crypto mining infrastructure. The U.S. measures, part of a broader strategy to reduce reliance on foreign manufacturing, intensified concerns about supply chain disruptions CNN^[2].

Bitcoin's price fell nearly 10% in five days, erasing gains from earlier in the year when it reached a record high of $124,000. Ether and Solana (SOL) also suffered steep declines, with SOL dropping below $140. The global crypto market capitalization fell to $3.64 trillion, a 11.8% decrease in 24 hours Invezz^[3]. Analysts at Hyblock Capital observed that global 2x leverage on altcoins was "totally wiped out," while CoinGlass reported $9.4 billion in total liquidations, with $7.15 billion from leveraged longs Coindesk^[4].

The sell-off mirrored broader market turmoil, with the S&P 500 and Nasdaq posting their steepest declines in six months. Institutional investors and traders shifted capital to stablecoins and traditional safe-haven assets like gold. The U.S. dollar index (DXY) rose above 107, exacerbating downward pressure on crypto prices Times Now^[5].

Market participants highlighted the interconnectedness of global macroeconomic factors and crypto markets. Analysts at EconSphere Advisors warned that the tariffs could strain global supply chains, particularly in semiconductors and AI, further pressuring risk assets. Meanwhile, BitMEX analysts noted that while Bitcoin's fundamentals remain intact, the crash created "rare buying opportunities" for long-term investors Markets FinancialContent^[6].

The event underscored crypto's vulnerability to geopolitical shocks and leveraged trading. With over 1.6 million traders liquidated, the crash highlighted the fragility of highly leveraged positions. Some analysts compared the volatility to the March 2020 pandemic-driven crash, emphasizing the need for improved risk management in leveraged trading BeInCrypto^[7].