Trump Tariff Threat Against China Causes Bitcoin to Fall 3%, $807M in Liquidations
John: Hey there, folks! I’m John, a veteran writer for Blockchain Bulletin, where I break down the wild world of crypto in simple terms that won’t make your head spin. Today, we’re diving into how President Trump’s recent tariff threats against China have shaken up the Bitcoin market, causing a notable dip and massive liquidations—though updates show the impact has grown even bigger. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi everyone, I’m Lila, John’s curious assistant who’s always eager to learn more about this crypto stuff. John, what’s the big deal with these tariffs, and why are they making Bitcoin prices tumble?
What Happened on October 10, 2025?
John: Let’s start with the basics, Lila. On 2025-10-10, President Donald Trump announced plans for a 100% tariff on Chinese imports, along with new export controls, in response to China’s restrictions on rare-earth materials. This reignited fears of a full-scale US-China trade war, sending shockwaves through global markets, including cryptocurrencies.
Lila: Wow, 100% tariffs sound extreme! What exactly are tariffs, and how did this announcement hit Bitcoin right away?
John: Tariffs are essentially taxes on imported goods, Lila—like adding an extra fee to make foreign products more expensive. According to reports from CoinDesk, Bitcoin dropped below $119,000 shortly after the news, with the crypto market losing over $200 billion in value as per Yahoo Finance. It’s like a sudden storm hitting a calm sea, catching many traders off guard.
Background on US-China Trade Tensions
Lila: This isn’t the first time we’ve heard about US-China trade issues. Can you give some context from the past?
John: Absolutely, Lila. In the past, trade tensions between the US and China have flared up multiple times, such as during Trump’s first term when tariffs were imposed on various goods starting in 2018. Fast forward to now, on 2025-10-10, Trump’s statement escalated things by targeting tech imports and rare-earth exports, which are crucial for electronics and mining—key areas tied to crypto hardware. Sources like FXStreet note this as the largest crypto decline in 2025 so far.
Lila: Rare-earth exports? That sounds technical—what does that mean for everyday crypto users?
John: Good question! Rare-earth materials are special minerals used in making computer chips and batteries, which power the mining rigs for cryptocurrencies like Bitcoin. China’s controls on these could disrupt supply chains, making it harder and more expensive to produce the hardware needed for blockchain networks. It’s like if your local grocery store suddenly limited flour supplies—bakers everywhere would feel the pinch.
Impact on the Crypto Market
Lila: So, how bad did this hit the overall market? I saw mentions of liquidations—what are those?
John: Liquidations happen when traders using borrowed money (leverage) get forced to sell their positions if prices drop too much, Lila—think of it as a margin call in stock trading. Based on updated info from The Economic Times, the crypto market saw a record $19 billion in liquidations on 2025-10-10, with some reports from Times Now indicating up to $30-40 billion across the board. Bitcoin itself fell nearly 10% to as low as $103,000, while Ethereum dropped double digits.
Lila: That’s a huge number! Were other cryptocurrencies affected too?
John: Yes, indeed. Major tokens like XRP and Binance Coin also plunged, contributing to the market wipeout described by TheStreet as the worst since early April 2025. Posts on X (formerly Twitter) reflect widespread panic, with traders sharing stories of massive losses, though remember, social media sentiment isn’t always factual evidence.
Why Does This Affect Bitcoin?
Lila: Bitcoin is supposed to be decentralized and global—why would trade wars between two countries shake it up so much?
John: Great point, Lila. While Bitcoin operates on a decentralized blockchain, its price is influenced by global economic factors, investor sentiment, and real-world events. The tariff threat raises fears of economic slowdowns, which can lead investors to sell risky assets like crypto for safer ones. As of 2025-10-11, Bitcoin has bounced back slightly to around $113,000, per CoinDesk updates, but the volatility shows how interconnected crypto is with traditional finance.
Lila: Interconnected how? Any examples?
John: Sure—China is a major player in Bitcoin mining due to its cheap energy and hardware production. If tariffs disrupt that, it could increase costs for miners worldwide, potentially slowing the network or raising transaction fees. It’s like a ripple effect: one stone thrown in the pond affects the whole surface.
Current Market Status as of October 11, 2025
Lila: What’s happening right now? Has the market stabilized?
John: As of today, 2025-10-11, the market is still reeling but showing signs of recovery. Bitcoin is trading around $113,000 after touching lows near $100,000 on some exchanges, according to real-time data from CryptoSlate and Cointelegraph sources. Total market cap has dropped by about 35% since the announcement, but trading volume is high, indicating both panic selling and bargain hunting.
Lila: That sounds intense. Any tips for beginners navigating this?
Risks and Safeguards
John: Volatility like this highlights key risks, Lila—prices can swing wildly based on news, leading to potential losses. Safeguards include diversifying your portfolio and avoiding leverage if you’re new. (And hey, if markets were predictable, we’d all be millionaires by now—but that’s the fun of it, right?)
Lila: Diversifying sounds smart. What else can people do?
John: Here’s a quick list of practical tips:
- Stay informed with trusted sources like CoinDesk or official regulatory updates to avoid reacting to rumors.
- Use stop-loss orders on exchanges to limit losses during sudden drops.
- Consider holding long-term if you believe in the tech, rather than trading on short-term news.
- Never invest more than you can afford to lose—crypto isn’t a get-rich-quick scheme.
Looking Ahead
Lila: What’s next? Could this get worse, or is recovery on the horizon?
John: Looking ahead, if the tariffs go into effect on November 1, 2025, as announced, we might see more fluctuations. However, past events like the 2018 trade wars showed crypto’s resilience, with Bitcoin recovering over time. Regulatory clarity from bodies like the SEC could help stabilize things, but keep an eye on updates from reliable sources.
Lila: Thanks for the breakdown—it’s less scary when explained simply!
John: Wrapping this up, it’s clear that global events like trade wars can ripple into crypto, reminding us of the market’s maturity and interconnectedness. Stay curious and informed, folks—crypto’s journey is full of ups and downs, but that’s what makes it exciting. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Key takeaway: Keep learning and don’t panic—crypto bounces back, just like always!
This article was created using the original article below and verified real-time sources:
- Trump tariff threat against China causes Bitcoin to fall 3%, $807M in liquidations
- Crypto Markets Crash As US-China Trade War Officially Begins With Trump’s 100% Tariff
- Bitcoin (BTC) Price News: Bulls Stifled Again
- Why is the crypto market crashing? | FXStreet