Trump’s Tariff Threat Sparks Major Crypto Market Crash

Donald Trump’s announcement of a 100% tariff on Chinese goods resulted in a sudden downturn in the crypto market. Following this, Trump expressed a willingness to reconsider the tariffs if China revises its rare earth export policies by November 1.

The primary figures involved are Donald Trump and Xi Jinping. Trump’s approach led to a cancelled bilateral meeting, though he indicated potential future dialogue if China changes its stance. There were no immediate comments from major crypto industry leaders.

The announcement led to the liquidation of over $9.55 billion in cryptocurrencies, impacting more than 1.5 million traders globally. Bitcoin saw liquidations of $1.37 billion, with its price falling sharply from $122,000 to briefly under $102,000. Market Analysts described it as “Worst day of the year” for Bitcoin and Ethereum, with no direct responses from regulatory bodies.

Market reactions included a sharp drop in the total crypto market cap by 9%, down to $3.8 trillion. Analysts described it as “the worst day of the year” for major assets like Bitcoin and Ethereum, with no direct responses from regulatory bodies.

Similar trade tensions between the US and China during 2018–2019 did not lead to such drastic crypto liquidations, although they did affect market volatility. Gold has consistently emerged as a reliable hedge in these scenarios.

Experts suggest possible longer-term market stabilization if China addresses its export policies before the tariff deadline. Should they respond favorably, the market could recuperate from current losses, considering historical precedents. “It will all be fine,” Donald Trump assured, expressing optimism for resolving the tensions.