The crypto market took a $280B crash on Friday after U.S. President Donald Trump announced a 100% tariff on Chinese imports, effective Nov 1.
Author: Sahil Thakur
11 October 2025 – The crypto market had a huge crash on Friday after U.S. President Donald Trump announced a sweeping 100% tariff on Chinese imports, effective November 1. The decision came in retaliation to China’s plans to restrict exports of rare earth elements, critical materials used in computer chips, semiconductors, and crypto mining hardware.
“China has taken an extraordinarily aggressive position,” Trump posted on Truth Social, adding that the country sent a “hostile letter to the world” outlining its upcoming export controls.
The crypto crash followed immediately after Trump’s statement, with Bitcoin (BTC) dropping sharply. The BTC/USDT futures pair on Binance hit a low of $102,000, the lowest since June. Spot prices on Coinbase fell to $107,000. Overall, $9.4 billion in crypto positions were liquidated within 24 hours — with $7.15 billion wiped from leveraged long positions, according to CoinGlass.
Other top tokens were not spared. Ethereum (ETH) fell to $3,500, down 12%, while Solana (SOL) crashed below $140, a 14% intraday loss.
Analysts at Hyblock Capital noted, “Global 2x leverage on most altcoins was totally wiped out.”
The selloff spread across multiple crypto sectors. XRP dropped 32%, while ETH lost 18% and SOL fell 20%. Memecoins plunged 35%, and tokens in the Artificial Intelligence (AI) sector declined 30%.
This marks one of 2025’s sharpest single-day crashes in digital assets.
Data from Lookonchain revealed that a well-known “Bitcoin OG” wallet opened $1.1 billion in short positions on BTC and ETH just before the drop — earning over $27 million in unrealized profits.
Stocks also slumped following the announcement. The S&P 500 dropped 2.7%, or 182 points. The Dow Jones lost 878 points, falling 1.9%. Crypto-related stocks mirrored the drop:
Geoffrey Kendrick of Standard Chartered warned, “A sub-1.0 mNAV puts pressure on treasury firms and could accelerate consolidation.”
Trump Decisions Affecting Crypto Markets
At the heart of this financial shockwave is a deepening chip war between the U.S. and China. China’s move to tighten control over rare earth exports threatens global supply chains. In response, the U.S. is escalating trade barriers to limit dependency on foreign materials.
These developments strain the availability of chips for AI, computing, and mining infrastructure, further shaking crypto market confidence.
This isn’t the first time Trump’s trade policies have rattled crypto markets. Similar price drops followed the April Liberation Day tariffs and the August global trade partner retaliation tariffs.
The latest move rekindles concerns of a global recession and could stall the bullish momentum crypto had seen since early October. At press time, the global crypto market cap stands at $3.64 trillion, down 11.8% in the last 24 hours.
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