Bitcoin Takes Historic Hit as U.S. Imposes 100% Tariffs on China

In a dramatic twist for global markets, Bitcoin plunged sharply following the United States’ announcement of sweeping new tariffs on Chinese imports — a move seen as escalating the U.S.–China trade war and triggering extreme volatility in the cryptocurrency space.

What Happened

On October 10, 2025, President Donald Trump declared a 100% tariff on Chinese exports, targeting critical tech and software goods.

Markets reacted swiftly: more than $19 billion was wiped out from the crypto sector in one day.

Bitcoin’s price fell approximately 8.4%, slipping to around $104,782, while Ethereum also dropped sharply. 

Why It Caused a Crash

The 100% tariffs introduced massive uncertainty across tech-linked sectors, spooking investors.

Cryptocurrencies, seen as more speculative and risk-sensitive assets, were among the first to be sold off in the rush to safer holdings.

Reports also suggest some anonymous traders made large bets just before the announcement, stirring suspicions of insider trading.

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 The Recovery Attempts

By October 13, Bitcoin began clawing back some losses, recovering over 12% from its weekend low.

However, it remained volatile and far from its recent highs as the market remains jittery.

The broader stock markets also showed signs of rebound after Trump slightly softened trade rhetoric, offering some relief to risk assets.

 Expert Take & Outlook

Analysts warn that the crypto crash underscores how vulnerable digital assets are to geopolitical shocks. One finance expert commented that Bitcoin’s steep fall “shows how unpredictable the market can be.”

They advise investors to stay cautious, focus on risk management, and consider the possibility of further fluctuations as trade tensions evolve.