The crypto market is expected to fall further following President Donald Trump’s proposal of a 100% tax on Chinese imports, which would go into force on November 1, 2025. The move, in reaction to Beijing’s export curbs, has spurred widespread selling of digital assets, exacerbating market losses.
Trump’s Tariff Announcement Triggers a New Crypto Market Selloff
In a social media tweet, Trump said China had adopted a “extraordinarily hostile” position on trade by issuing a global letter outlining new export limits. He noted that the regulations would apply to almost every commodity the country produces, as well as others that it does not. Trump described the decision as “unheard of in international trade” and “a moral disgrace” in inter-nation relations.
Trump indicated that the US will react by levying a 100% tariff on Chinese imports and putting export curbs on vital software. The policies will take effect on November 1, 2025.
Bitcoin’s price has already reacted to Trump’s previous tariff warnings, indicating rising investor fear. The confirmation of the threat had an impact on the cryptocurrency market. Bitcoin, Ethereum, and Solana all experienced additional price declines.
Meanwhile, the president of the United States suggested that if China intensifies its activities, the new tariff proposal might be implemented earlier. “Starting November 1, the United States will impose a 100% tariff on China, over and above any existing tariffs,” the president wrote.
Nearly $7 billion was liquidated from cryptocurrency markets
Coinglass statistics at the time of writing showed that approximately $7 billion in cryptocurrency holdings had been liquidated in only one hour. The majority of these liquidations (about $5.67 billion) stemmed from long positions.
This suggested that most crypto market participants were speculating on price gains prior to the unexpected fall. Short positions accounted for around $1.3 billion in liquidations. This demonstrated broad volatility on both sides of the cryptocurrency market. Recently, Canada’s retaliatory tariffs on US imports spurred a small crypto market comeback. This demonstrates how global trade disputes frequently shape market sentiment.
The massive liquidation surge is one of the largest hourly wipes in the history of the cryptocurrency market. Heavy exchange traffic ensued. Top exchanges, including Binance, began to notice system stress as trade volume surged substantially. Binance reported that its systems were overburdened, which would cause some delays and display issues. However, it informed customers that the “funds are SAFU.”
According to TradingView statistics, prices for all major cryptocurrencies have fallen dramatically. Bitcoin price briefly plummeted to below $109,897 and then recovered over $110,000, while
Ethereum’s price decreased by more than 11%, trading below $3,900. Solana, BNB, and XRP were also hammered severely as traders attempted to liquidate their holdings in the face of significant price fluctuations.
