Global Cryptocurrency Market Sees Two-Day Downturn Amid Trump's Tariffs on China

The cryptocurrency market has plummeted to $3.7 trillion, down from a historic high of $4 trillion last week, amid President Trump's 100% tariffs on China. Bitcoin and Ethereum have dropped to multi-week lows, with Bitcoin at $111,660.41 and Ethereum at $3,817.26. Market analysts attribute the downturn to geopolitical tensions and restrictions on US software exports. Over $19 billion in bets have been wiped out, and analysts warn of potential market contagion.

The cryptocurrency market has plummeted to $3.7 trillion, down from a historic high of $4 trillion last week, amid President Trump's 100% tariffs on China. Bitcoin and Ethereum have dropped to multi-week lows, with Bitcoin at $111,660.41 and Ethereum at $3,817.26. Market analysts attribute the downturn to geopolitical tensions and restrictions on US software exports. Over $19 billion in bets have been wiped out, and analysts warn of potential market contagion.

The recent plunge in the crypto market was triggered by President Donald Trump's announcement of a 100% tariff on Chinese imports starting November 1. This move, coupled with software export bans, has reignited fears of a full-blown trade war. The tariffs and export restrictions have sent shockwaves through global markets, with the S&P 500 losing about $2 trillion in value and the cryptocurrency market falling by roughly $550 billion Bitcoin crashes below $110,000 for the first time since February as Trump vows 100% tariffs on China^[1].

Bitcoin, the world's largest cryptocurrency by market capitalization, has been particularly hard hit. It dropped to $109,444, its lowest level since February, following Trump's announcement. Ethereum, the second-largest cryptocurrency, also saw a significant decline, falling below $4,000 Bitcoin crashes below $110,000 for the first time since February as Trump vows 100% tariffs on China^[1]. The fallout from the tariffs has been swift, with nearly $1 billion in liquidations slamming the Bitcoin market within 24 hours Bitcoin crashes below $110,000 for the first time since February as Trump vows 100% tariffs on China^[1].

The market turmoil has not been confined to cryptocurrencies. The fallout has spread to stocks as well, with the SPY ETF dropping 2.7%, the QQQ sinking 3.5%, and BlackRock's IBIT Bitcoin ETF falling 3.7%. Even mining stocks, which had looked strong just days earlier, were not spared, with the CoinShares Bitcoin Mining ETF dropping 3.9% Bitcoin crashes below $110,000 for the first time since February as Trump vows 100% tariffs on China^[1].

Despite the crash, some mining stocks still walked away with gains over the week. HIVE ended the week up 40%, even with the sharp downturn in Friday’s session. BitFarms closed the week with a 31% gain Bitcoin crashes below $110,000 for the first time since February as Trump vows 100% tariffs on China^[1]. However, the trend may be breaking now, with the average one-month return for top miners coming in at 73.26% between September 10 and October 10 Bitcoin crashes below $110,000 for the first time since February as Trump vows 100% tariffs on China^[1].

The US dollar has also been impacted by the renewed trade tensions. The US dollar index (DXY) began the week climbing toward the 99 level, after briefly falling on Friday. The US dollar gained against the yen amid political uncertainty in Japan and held steady against the EUR/USD following a cabinet reshuffle in France US Dollar Surges as Trade Tensions Reignite – Eyes on 99–101 Resistance Zone^[2].

The renewed tension between the US and China marks a critical phase for the US dollar index, especially in terms of strategic dependencies. The US remains strong in semiconductors and software but relies heavily on China for rare metals. These metals play a key role in industries such as automotive, defense, renewable energy, and electronics. By 2024, China is expected to produce about 70% of the world’s rare metals and handle 85% of global processing US Dollar Surges as Trade Tensions Reignite – Eyes on 99–101 Resistance Zone^[2].

The cryptocurrency market's recovery will depend on how the US-China trade tensions evolve. If the Trump administration eases tariffs or resumes talks with Xi Jinping, the crypto market may struggle to hold its recent gains. However, if the trade conflict deepens or China tightens export restrictions, the crypto market could rise again Daily Crypto Signals: Bitcoin and Ethereum Rally as US-China Trade Tensions Ease, Market Recovers from Flash Crash^[3].

In conclusion, the cryptocurrency market has been significantly impacted by the renewed US-China trade tensions. The market has seen a sharp decline, with Bitcoin and Ethereum hitting multi-week lows. The market's recovery will depend on the evolution of US-China relations and the potential impact on global markets.