Bitcoin News Today: Trade War Sparks Pandemic-Style Crypto Collapse

Bitcoin and Ethereum plummeted amid escalating U.S.-China trade tensions following President Donald Trump's announcement of a 100% tariff on Chinese imports, triggering a broad sell-off across risk assets. Bitcoin (BTC) fell below $110,000, a 12% drop over 24 hours, while Ethereum (ETH) slid 16% to under $3,700. Major altcoins, including XRP, Solana (SOL), and Dogecoin (DOGE), lost 20%-30% of their value, with some tokens like Cardano (ADA) and Aave (AAVE) crashing as much as 40% Crypto Crash: Bitcoin (BTC) Down 10%, ETH, XRP, SOL in^[1]. The total crypto market capitalization fell to $4 trillion, erasing $200 billion in value within hours Trump Crashes Crypto Markets With 100% Tariff On China^[3].

The turmoil was compounded by immediate liquidations, with over $900 million in leveraged positions wiped out in a single hour, according to Coinglass data. Nearly $450 million in long positions and $50 million in short positions were liquidated, marking one of the largest crypto liquidation events in recent history Why Bitcoin Price, Ethereum, XRP, Solana, Other Altcoins Are …^[2]. Over 210,000 traders faced forced exits, with the largest single liquidation reaching $15.49 million on Hyperliquid Why Bitcoin Price, Ethereum, XRP, Solana, Other Altcoins Are …^[2].

Trump's escalation of trade tensions, including a 100% tariff on Chinese goods and export controls on critical software, was cited as the primary catalyst. The president accused China of monopolizing rare earth materials and imposing "extraordinarily aggressive" export controls, prompting retaliatory measures. The announcement followed earlier threats to cancel a planned meeting with Chinese President Xi Jinping, which had already triggered an initial $125 billion selloff in crypto markets Trump Crashes Crypto Markets With 100% Tariff On China^[3].

Analysts attributed the crash to a combination of macroeconomic fears and overbought conditions. 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 market as "eviscerated," with levels not seen in over a year Crypto Crash: Bitcoin (BTC) Down 10%, ETH, XRP, SOL in^[1]. The market's reaction mirrored the 2020 pandemic-induced crash, with traders likening the volatility to "Covid-level nukes" Crypto Crash: Bitcoin (BTC) Down 10%, ETH, XRP, SOL in^[1].

Geopolitical risks and supply chain concerns further amplified the sell-off. The U.S. Treasury's 10-year yield fell to 4.071%, and the U.S. Dollar Index (DXY) dropped 0.63% as investors sought safer assets Why Bitcoin Price, Ethereum, XRP, Solana, Other Altcoins Are …^[2]. The broader equity markets also reeled, with the Dow Jones Industrial Average falling 1.9%, the S&P 500 dropping 2.7%, and the Nasdaq tumbling 3.5% .

Despite the sharp decline, some analysts remain cautiously optimistic. Michael Saylor asserted that "there are no tariffs on Bitcoin," and 45% of predictors on Myriad Markets still foresee BTC reaching $140,000 before retreating to $110,000 . However, critics warn that leveraged trading and speculative ETF flows may exacerbate volatility, with perpetual futures funding rates spiking to 13% .

The market's next moves will hinge on Beijing's response and whether diplomatic channels reopen before November 1, when the tariffs take effect. For now, traders brace for a volatile weekend, with key support levels for Bitcoin at $110,000 and Ethereum near $4,000 under scrutiny Trump Crashes Crypto Markets With 100% Tariff On China^[3].