- Crypto markets fell sharply following the announcement of a new 100% U.S. tariff on Chinese goods.
- Bitcoin dropped 12% in 24 hours, falling below $110,000.
- Ether and major altcoins saw declines between 16% and 40%.
- Over $7 billion in crypto trades were liquidated during the sharp sell-off.
- The market reaction followed trade tension escalations and drew comparisons to the March 2020 crash.
A sudden decline hit digital asset prices on Friday after U.S. President Donald Trump announced an additional 100% tariff on Chinese goods, causing a rapid drop in the value of cryptocurrencies.
Bitcoin was trading near $117,000 before the announcement, then plummeted to under $110,000—a 12% decrease over 24 hours. Ether slipped below $3,700, down 16%. Other notable cryptocurrencies, including XRP, Solana, and Dogecoin, experienced losses ranging from 20% to 30%. Tokens like Cardano (ADA), ChainLink (LINK), and Aave tumbled as much as 40%.
According to CoinGlass, the market downturn triggered over $7 billion in liquidations as traders who bet on rising prices were forced to sell. The market shift followed a sequence of statements from Trump, who confirmed increased tariffs as a response to China’s export controls on rare earth metals. He later posted on Truth Social that the new 100% tariff would take effect on November 1, along with export controls on critical software.
Bitcoin lost $3,000 in value within minutes of the announcement. Some market analysts compared the abrupt crash to the March 2020 downturn during the early COVID-19 lockdowns. “Covid level nukes,” commented trader Bob Loukas in an X post. He added, “Wow, nasty, nasty action. But also a great candidate for the mother of shakeouts,” in a second message.
Founder of Lumida Wealth Ram Ahluwalia said, “The Trump news combined with ‘overbought’ conditions led to a sharp decline,” in an X update. Trader Pentoshi commented, “There are a lot of people in incredible pain right now, myself included in that,” in a series of posts. Zaheer Ebtikar, founder and CIO of Split Capital, added in an X post, “We’re at levels not seen in more than a year with regard to altcoins. Full leverage reset and market dislocation.”
The sell-off followed heightened tensions between the U.S. and China, coinciding with tariff increases and new export restrictions. Many traders likened the event to previous large-scale market shocks, marking it as one of the most severe drawdowns in crypto in recent years.
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