Bitcoin’s value fell dramatically to $102,000 in the Binance perpetual futures pair after President Trump announced a 100% tariff on China last Friday, causing renewed concerns over possible trade and market disruptions.
The announcement led Bitcoin (BTC) to dip below $110,000 during this writing. Trump stated that the tariffs respond to China’s plans to impose export restrictions on vital rare earth minerals critical for semiconductor production.
Trump mentioned on Truth Social:
“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 1, 2025, impose large-scale Export Controls on virtually every product they make.”
[Translation: “It has come to light that China has adopted a very aggressive trade stance by sending a confrontational letter globally, announcing that they will enforce extensive export controls on nearly all their products starting November 1, 2025.”]
The first tariff declarations by Trump in April previously sent shockwaves through the crypto markets, heightening recession fears.
Bitcoin Hits Three-Month Low at $102,000
Following the announcement, the Bitcoin BTC/USDT futures pair at the Binance exchange dropped to an unprecedented $102,000, marking the lowest value since late June when the price was below $100,000. The Bitcoin spot price at Coinbase reached an operational low of $107,000, with $9.40 billion in total crypto market positions liquidated within the last 24 hours, including $7.15 billion attributed to leveraged longs.
Total crypto market liquidations. Source: CoinGlass
The broader crypto market also faced significant declines, with Ether (ETH) falling sharply.
Tariff Implications and Semiconductor Access
Rare earth elements play a crucial role in the production of semiconductors. By imposing strict access controls to these resources, China poses a threat to the global supply chain, impacting advancements in AI, high-performance computing, and cryptocurrency mining.
Simultaneously, U.S. measures aimed at limiting Chinese tech exports and investments are part of a broader strategy to reduce dependency on foreign production.
After the tariff announcement, the wider crypto market experienced a downturn, with Ether (ETH) and Solana (SOL) seeing losses of 12% and 14%, respectively. The current worldwide crypto market capitalization stands at $3.64 trillion, reflecting an 11.80% decrease over the past day.
Related: The 2025 US-China Trade War
This situation is evolving, and updates will be provided as more information becomes available.
