The global crypto market turned sharply lower as renewed trade tensions between the United States and China rattled investor sentiment. The sell‑off followed U.S. President Donald Trump’s warning that his administration is considering major tariff increases on Chinese imports after Beijing announced plans to impose export restrictions on rare earth elements, critical materials used in technology, semiconductors, and electric vehicles.
Traders fear the move could escalate into a broader economic standoff, tightening global liquidity and weakening risk appetite across equities and digital assets.
According to the latest market data, Bitcoin (BTC) fell 1.57% to $119,109, while Ethereum (ETH) slumped 4.43% to $4,123, extending its weekly loss to more than 8%.
The downturn spread across major altcoins, with Solana (SOL) down 3.33% to $212.71, XRP dropping nearly 10% to $2.74, and Cardano (ADA) sliding 1.86% to $0.78.
Even meme coins weren’t spared, Dogecoin (DOGE) slipped 1.74% on the day, while BNB was the only large‑cap token showing resilience, up 6.6% for the week at $1,222, buoyed by strong DeFi ecosystem growth. Stablecoins like USDT and USDC held steady near $1 as traders sought safety amid volatility.
Market analysts link the pullback to both macroeconomic uncertainty and investor rotation ahead of next week’s U.S. inflation data. The renewed tariff rhetoric echoes previous trade wars that drained global liquidity, a dynamic that historically pressures speculative assets like Bitcoin.
With Trump signaling that Washington may retaliate economically, traders are bracing for heightened volatility across risk markets, suggesting that crypto could remain under pressure until clearer signals emerge from Washington and Beijing.