What to Know
- •Main event, leadership changes, market impact, financial shifts, or expert insights.
- •U.S.-China tariffs disrupt global crypto supply chains.
- •Significant Bitcoin and altcoin market sell‑offs initiated.
A sharp crypto sell‑off occurred after U.S. President Donald Trump announced a 100% tariff on Chinese goods, escalating tensions with China over rare earth export controls.
This impacts global markets by threatening crypto mining supply chains and triggering substantial liquidations, leading to heightened volatility and uncertainty in cryptocurrency valuations.
In the latest escalation of the U.S.-China trade war, President Donald Trump announced a 100% tariff on Chinese goods, igniting a sharp sell‑off in crypto markets on October 25, 2025.
The heightened trade conflict threatens global crypto market stability, intensifying volatility amid geopolitical uncertainty and impacting major digital currencies like Bitcoin and Ethereum.
Sections
Trump’s 100% Tariffs Shock Crypto Mining Sector
President Donald Trump's decision to impose 100% additional tariffs on Chinese goods drastically increased tensions, directly affecting crypto markets. This move followed China's export controls on rare earth metals, crucial for cryptocurrency mining hardware.
Donald Trump, U.S. President, announced a 100% additional tariff on Chinese goods in response to China’s export controls on rare earth metals, directly escalating global market volatility and triggering a sharp crypto sell‑off.
The measures highlight the strategic rivalry between the U.S. and China, with Chinese President Xi Jinping's policies targeting technology sectors critical to global economies. The resulting instability saw Bitcoin falling below $108,000, amid market shock.
Massive Crypto Declines Post Tariff Announcement
The tariff increase has had significant consequences for the crypto industry, with a sharp decline in Bitcoin prices and other major cryptocurrencies. Ethereum, XRP, Solana, and Cardano all experienced substantial price drops in response.
Financial markets and related stocks, including Circle and Robinhood, saw notable declines. Specifically, over $19 billion in derivatives were liquidated, amplifying the downward trajectory across digital assets.
Geopolitical Tensions Mirror Past Market Crashes
This situation echoes the 2020 COVID‑19 market crash, which caused a severe liquidity crunch, though current events emphasize geopolitical supply chain issues. Similarly, during the 2018–2019 trade war, global crypto markets remained volatile amidst tariff disputes.
Experts suggest "smart money" may be accumulating as retail panic peaks during downturns. Historical trends indicate a potential market rebound if strategic adjustments are made within the industry.