Bitcoin Crashes Below $102K As Trump Declares Tariffs On China

Bitcoin’s price plunged to $102,000 on Binance’s perpetual futures pair after U.S. President Donald Trump reignited trade war fears by announcing sweeping 100% tariffs on Chinese imports.

The move, aimed at countering Beijing’s decision to restrict exports of rare earth minerals vital for semiconductor manufacturing, sent shockwaves through both traditional and crypto markets.

At press time, Bitcoin’s spot price on Coinbase had fallen to $107,000 — its lowest level since late June — while liquidation data from CoinGlass revealed nearly $9.4 billion in crypto positions wiped out in 24 hours, with $7.15 billion stemming from over-leveraged long trades.

Ether dropped to $3,500, and Solana slipped under $140 on Binance, as analysts at Hyblock Capital reported that virtually all 2x leveraged positions across major altcoins were erased.

Trade War Fears Ripple Across Crypto

The market chaos followed Trump’s post on Truth Social, in which he accused China of taking an “extraordinarily aggressive position” by planning, effective November 1, to impose sweeping export controls on critical products — including rare earths used in AI, high-performance computing, and crypto mining hardware.

“China’s had taken an extraordinarily aggresive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1, 2025, impose large-scale Export Controls on virtually every product they make."

The standoff over rare earth access struck at the heart of modern technology manufacturing and sent risk assets tumbling. With the U.S. seeking to reduce reliance on Chinese-made components, analysts warned that tighter supply could exacerbate costs for data centers, AI infrastructure, and even Bitcoin miners — all heavily dependent on advanced semiconductors.

According to CoinGlass, the broader crypto market shed 11.8% of its total capitalization, now standing at $3.64 trillion. Ether plunged 12%, Solana 14%, and Bitcoin briefly dipped to its lowest point in three months as investors rushed to unwind leveraged bets amid fears of prolonged trade and liquidity pressure.

The New Tariff Era Exposes Crypto’s Fragility

This latest sell-off underscores how deeply intertwined Bitcoin and the digital asset sector remain with global macroeconomic forces. Despite the narrative of “digital gold” independence, crypto continues to behave like a high-risk asset class — vulnerable to geopolitical shocks, liquidity crunches, and market sentiment.

If Trump’s tariffs trigger a broader economic cooldown or sustained capital flight from risk assets, crypto could see renewed volatility heading into the final quarter of 2025. However, long-term investors may also view this moment as a recalibration — a painful but necessary correction that reinforces Bitcoin’s resilience in turbulent markets.

In short, the tariff shock has once again reminded investors that even in a decentralized world, crypto prices remain tethered to the politics of trade and power.