The crypto market crashes hard today as President Donald Trump’s shock 100% tariff on China unleashes global panic, wiping out $200 billion in value overnight.
Bitcoin tumbled 10% to $107,000 from $122,000, while Ethereum plunged 15% below $3,800, according to CoinGecko and CoinDesk data.
This fiery escalation in the U.S.-China trade war revives 2019 nightmares, hitting risk assets like crypto hardest and sparking $16 billion in leveraged liquidations.
Investors scramble as supply chain fears grip tech and blockchain sectors—will this dip turn into a buying frenzy?
Trump’s China Tariff Sparks Instant Crypto Chaos
Trump fired the opening shot late Friday, announcing the 100% tariff on all Chinese imports effective November 1, 2025—or sooner if Beijing escalates.
He slammed China’s “extraordinarily aggressive” export controls on rare earth metals and “virtually every product,” calling it a hostile bid to hold the world “captive.”
Meanwhile, the U.S. will slap export curbs on critical software, targeting China’s tech edge.
The blow landed swiftly. Total crypto market cap shrank from $4.25 trillion to $4.05 trillion in hours, per BeInCrypto reports.
Bitcoin led the rout, dipping below $108,000 at one point—a 12% 24-hour slide—while altcoins like Solana and XRP cratered 20-30%.
Over 1.5 million traders faced margin calls, with $9.55 billion in positions erased, CoinGlass data shows.
Notably, longs bore the brunt at $7.15 billion, exposing overleveraged bets on crypto’s post-election rally.
The funniest thing about this flash crash is that it could have been predicted.
Trump $WLFI company just dumped 30 % by market few hours before tariffs announce.The biggest crime in Crypto I've ever seen. pic.twitter.com/viKgD7vMfj
— alm1ghty_v2 (@alm1ghty_v2) October 11, 2025
Why Crypto Feels the China Tariff Sting
However, this isn’t random volatility—China dominates 70% of rare earth production, key for semiconductors powering AI, EVs, and crypto mining rigs.
Tariffs threaten hardware costs and blockchain infrastructure, deepening supply chain woes already roiling global tech.
Additionally, Trump’s move canceled a Xi summit, fueling recession jitters that echo April’s “Liberation Day” tariffs, which shaved $320 billion off crypto then.
Trending now on X and Reddit: “Is this the end of crypto’s bull run?” Analysts like those at FXStreet warn it could “quench positive momentum” from Bitcoin ETFs, which drew $20 billion inflows this year.
Yet, some see silver linings. “This flush is in the top 3 all-time—painful, but a reset for stronger legs,” tweeted trader Pentoshi.
Crypto stocks like Coinbase (COIN) and MicroStrategy (MSTR) shed 3-12%, mirroring Nasdaq’s 2% drop.
What’s Next After the Crypto Market Crashes?
One of the biggest overnight crashes in history.
$2B+ liquidated in 12 hours,
Longs wiped,
Open interest nuked,
Funding flipped negative across every major exchange.
This isn’t just volatility, it’s coordinated manipulation at scale.
I’m buying more. pic.twitter.com/dxVAcaHrIH
— Kinzora (@kinzora_) October 11, 2025
Looking ahead, experts predict short-term turbulence but potential rebound if no further escalations hit. “Volatility lingers through the weekend, but thin liquidity could spark a snapback,” notes BeInCrypto.
Meanwhile, stablecoins like USDe dipped sub-$1 briefly, signaling flight to safety.
For investors, this China tariff drama underscores crypto’s ties to geopolitics—diversify, they say, as U.S. inflation data looms next week.
In context, Trump’s pro-crypto stance (he backed Bitcoin ETFs) clashes with his trade hawkishness, creating whiplash for holders. As one FXStreet analyst put it: “Tariffs quench October’s highs, but history shows crypto bounces from trade scares.”
Stay tuned—could this crash birth the next bull wave?
