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US Imposes 100% Tariffs on Chinese Tech Exports, Crypto Market Experiences Historic $19 Billion Slide
ByAinvest
Sunday, Oct 12, 2025 3:58 am ET1min read
The cryptocurrency market has experienced a historic $19 billion slide due to US President Donald Trump's imposition of 100% tariffs on Chinese tech exports and export controls on critical software. Bitcoin dropped 8.4% to $104,782, while Ethereum fell 5.8% to $3,637. Major tokens like Binance Coin, XRP, and Tether also suffered steep losses. The sell-off has triggered a record $19 billion wipeout across the cryptocurrency market, sending over 1.6 million traders into liquidation.
The cryptocurrency market experienced a historic $19 billion slide on Friday, September 12, 2025, following U.S. President Donald Trump's imposition of 100% tariffs on Chinese tech exports and export controls on critical software. The market turmoil was triggered by Trump's decision to end an uneasy trade truce with China, signaling a significant escalation in the trade war.Bitcoin (BTC) dropped 8.4% to $104,782, while Ethereum (ETH) fell 5.8% to $3,637. Major tokens like Binance Coin (BNB), XRP, and Tether (USDT) also suffered steep losses. The sell-off has triggered a record $19 billion wipeout across the cryptocurrency market, sending over 1.6 million traders into liquidation.
The sudden market volatility was exacerbated by President Trump's announcement of new trade measures. In a series of social media posts and a public back-and-forth with reporters, Trump revealed plans to impose 100% tariffs on China's U.S.-bound exports and new export controls on critical software. These actions were a swift response to China's expansion of rare earth element export controls, which are essential to tech manufacturing [1].
The market's reaction was immediate and severe. The benchmark S&P 500 Index slid by more than 2%, its biggest one-day drop since April. Investors fled into safe haven assets like gold and U.S. Treasury securities, and the U.S. dollar weakened against a basket of foreign currencies. Tech stocks piled on losses in after-market trading, reflecting the broader market's concern over the potential impact of the new trade measures on the tech industry.
The cryptocurrency market's decline was not solely driven by the trade war. Internal market dynamics also played a significant role. Data from Glassnode indicates that XRP's bullish momentum has waned since late 2024, with investors who accumulated below $1 taking profits during rallies above $2 and $3. This profit-taking has led to a consolidation phase for the token [2].
Despite the market's current uncertainty, analysts remain optimistic about potential catalysts that could reignite investor confidence in the digital asset. The impending approval of spot ETFs and the continued growth and adoption of Ripple's blockchain technology and XRP Ledger could fuel the crypto token's ascent.
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