The cryptocurrency market experienced a significant downturn on Friday following a late-morning announcement by U.S. President Donald Trump, who declared a 100% tariff increase on Chinese imports starting November 1. This unexpected development drove widespread selling pressure across major digital assets, causing prices to plummet in a rapid decline.
Bitcoin (BTC), which had already weakened from approximately $117,000, fell below the $110,000 mark, representing a 12% drop within 24 hours. Ethereum (ETH) declined even more sharply, slipping below $3,700 with a 16% decrease. Other prominent cryptocurrencies endured substantial losses, with XRP, Solana (SOL), and Dogecoin (DOGE) tumbling between 20% and 30%.
Altcoins such as Cardano (ADA), Chainlink (LINK), and Aave (AAVE) faced the steepest declines, losing up to 40% of their value amid the market turmoil. The sudden sell-off triggered over $7 billion in liquidations of leveraged positions by traders optimistic about rising prices, according to data from CoinGlass.
This escalation in trade tensions was prompted by China’s recent export controls on rare earth metals, a crucial component in many industries. In response, President Trump announced the tariff hike accompanied by plans to implement export restrictions on critical software starting the same day the tariff increase takes effect. The announcement was made on Trump’s social media platform, Truth Social, late Friday afternoon, which coincided with an immediate $3,000 drop in Bitcoin’s value.
The intensified trade conflict highlights ongoing geopolitical risks influencing global markets, extending the impact beyond traditional equities to the highly volatile cryptocurrency sector. Investors and market participants are closely monitoring developments as the new tariffs and export controls are set to come into force next month.
Despite the sharp declines, market analysts caution against interpreting the sell-off as permanent, noting the crypto market’s historic volatility in response to geopolitical events. However, the current episode underscores how global policy decisions continue to play a pivotal role in shaping digital asset markets.
Additional reporting and updates on the liquidation figures and market reactions are awaited as the situation unfolds.
