Bitcoin News Today: Trade War Fears Drive $9.4B Crypto Crash as Markets Turn Risk-Off

The global cryptocurrency market experienced a sharp sell-off following U.S. President Donald Trump's announcement of sweeping new tariffs and export controls on China, erasing approximately $9.4 billion in value within hours. The total crypto market capitalization fell from around $4.25 trillion to $4.05 trillion, according to CoinGecko, with Bitcoin dropping 10% to $107,000 from $122,000. Ethereum, XRP, and BNB plummeted more than 15%, while altcoins like Solana and Cardano faced steeper declines. The sell-off was exacerbated by forced liquidations of leveraged positions, with over $7 billion in losses reported by platforms like CoinGlassCrypto Markets Crash As US-China Trade War Officially Begins With Trump’s 100% Tariff^[1].

The escalation in U.S.-China trade tensions, marked by Trump's 100% tariff on Chinese imports and export restrictions on critical software, triggered a broader "risk-off" retreat across asset classes. Analysts attributed the crash to renewed fears of a full-scale trade war, compounding existing macroeconomic uncertainties such as rate-cut speculation and slowing global growth. Institutional traders, who have increasingly aligned crypto markets with equities, shifted capital to safer assets, deepening the downturnTrump’s China Tariff Triggers Crypto Crash, But For How Long?^[2]. The timing of the announcement caught markets off guard, intensifying liquidation pressure on leveraged positions and testing key psychological levels for BitcoinBitcoin Falls Below $110K, $7B Liquidated After New Trump Tariff^[3].

Short-term volatility is expected to persist as traders digest the policy shock. Bitcoin's price hovered near the $115,000–$118,000 range, while altcoins remained under pressure. Analysts warned that further declines could occur if China retaliates or if formal executive orders are issued, extending the downturn by one to two weeks. However, some market participants viewed the selloff as a potential buying opportunity, citing historical precedents where crypto markets rebounded after trade war-driven corrections. For instance, during the 2019 U.S.-China trade tensions, Bitcoin initially fell 20% but later surged as a hedge against uncertaintyTariff Tussle: How China's Trade War with US Could Impact Bitcoin Price^[4].

Long-term recovery hinges on the resolution of trade disputes and policy clarity. If tensions persist into November, the sell-off could evolve into a broader macro correction similar to prior tariff shocks. Institutional confidence in risk assets will play a critical role, with recovery dependent on how quickly policymakers stabilize the situation. Meanwhile, stablecoins and gold have gained traction as safe-haven assets, reflecting shifting investor sentimentUS-China Trade War Rattles Crypto – What’s Next for Bitcoin?^[5].