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- Bitcoin nosedived to near $105,000 as Trump’s 100% China tariff announcement rattled global crypto markets.
- Analysts call the plunge a buying window, saying sentiment-driven dips often open rare entry points.
The global crypto market took a heavy blow on Friday after the U.S. President Donald Trump announced a 100% tariff on Chinese exports. Bitcoin plunged from around $122,000 to below $105,000 within minutes, while XRP tumbled more than 30% to under $2.
Trump’s move came in direct response to China’s restrictions on rare earth mineral exports, which are essential for technology and manufacturing sectors. He said the United States would impose export controls on “any and all critical software” in retaliation.
According to data from Coinglass, the market saw $19.31 billion worth of crypto positions liquidated in just 24 hours. Out of that figure, $16.82 billion were leveraged long positions, while $2.49 billion came from shorts.
Trump Responds to China’s Rare Earth Export Limits
In a Truth Social post, Trump stated,
It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025,impose large scale Export Controls on virtually every product they make, and some not even made by them.
He added that the action affects all countries, claiming it was a strategy developed years earlier. “It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations,” Trump said, emphasizing that the United States would impose reciprocal measures.
Trump confirmed that the United States will impose a 100% tariff on Chinese imports starting November 1, 2025, or sooner if China takes further action. Trump stated,
It is impossible to believe that China would have taken such an action, but they have, and the rest is history.
Analysts pointed out that this was not the first time a Trump tariff announcement had triggered a digital asset sell-off. Back in April, Bitcoin tumbled sharply after his first tariff comments sparked investor fears of an economic slowdown.
On February 1, when Trump signed an executive order imposing import duties on goods from China, Canada, and Mexico, Bitcoin briefly dipped below $100,000.
Analysts Call Bitcoin Drop a Buying Chance
Several analysts, however, viewed the fall as a potential opportunity. Bitwise Invest strategist Juan Leon remarked on X that
The best time to buy BTC has tended to be when it is being dragged down by broader markets.
Reminder on a day like this: the best time to buy BTC has tended to be when it is being dragged down by broader markets.
Wrote about this a while back: https://t.co/OfRzXYiNGk pic.twitter.com/rPodthBnN9
— Juan Leon (@singularity7x) October 10, 2025
Bitwise chief investment officer Matt Hougan added that many traders hesitate to act when the market looks weak, even though corrections create rare opportunities. Hougan noted,
It never feels good when you buy the dip. The dip comes when sentiment drops. Writing the number down can be a good form of discipline.
At the time of writing, Bitcoin has rebounded to $112,631, while XRP has climbed back to $2.42.
