Bitcoin Falls Below $110K, $7B Liquidated After New Trump Tariff Announcement
The crypto market experienced a significant downturn as U.S. President Trump announced an additional 100% tariff on China, leading to a rapid decline in prices.
- Bitcoin dropped by 12%, falling below $110,000 from $117,000.
- Ether declined by 16%, going below $3,700.
- Other major cryptocurrencies, including XRP, Solana, and Dogecoin, fell by 20%-30%.
- Cardano, Chainlink, and Aave tokens decreased by up to 40%.
This market turmoil resulted in over $7 billion in liquidations, according to CoinGlass.
The escalation in trade tensions with China came after Trump's statement about increasing tariffs due to China's export controls on rare earth metals. A further announcement on Truth Social indicated that these tariffs would start on November 1, along with export controls on critical software.
The price volatility was compared by analysts to the March 2020 crash during the COVID-19 pandemic. Traders highlighted the severity of the drop, noting the combination of "overbought" conditions and the impact of Trump's announcements on the market.