The global cryptocurrency market faced another significant drop late Friday following US President Donald Trump’s announcement of extensive new tariffs and export controls on China, bringing tensions to their highest levels since 2019.
In a public statement, Trump declared that the US would enact a 100% tariff on all imports from China starting November 1, referencing what he described as Beijing’s “extraordinarily aggressive” decision to implement broad export controls on “nearly every product they manufacture.”
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US and China Enter Their Biggest Trade War Since 2019
The announcement caused immediate upheaval in the markets. Within hours, the total cryptocurrency market capitalization plummeted from approximately $4.25 trillion to $4.05 trillion, erasing nearly $200 billion in value, according to CoinGecko.
Bitcoin fell by 10% to $107,000 from $122,000. Ethereum, XRP, and BNB recorded drops exceeding 15%.
This second wave of declines followed shortly after Trump’s earlier post, which canceled a scheduled meeting with Chinese President Xi Jinping and hinted at a “massive” tariff increase.
This initial statement triggered the first substantial sell-off, erasing around $125 billion in crypto market value and more than $800 million in leveraged positions.
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The latest announcement, however, indicates a transition from rhetoric to action, doubling tariffs to unprecedented levels and widening the dispute to encompass software and technology controls.
This action effectively confirms a full-scale trade confrontation, prompting a widespread “risk-off” retreat across equities, commodities, and digital assets.
Market analysts caution that the combined effects of tariffs and export limitations could disrupt the global technology supply chain — especially in semiconductors, AI, and blockchain infrastructures — heightening uncertainty in sectors critical to digital assets.
The timing of this escalation surprised the markets, amplifying liquidation pressure on leveraged positions.
Bitcoin’s decrease is now challenging key psychological levels, while altcoins continue to struggle due to heavy selling.
At this moment, traders are preparing for a volatile weekend. The market’s future direction will depend on whether Beijing retaliates or shows a willingness to reinitiate negotiations before November 1.
