Bitcoin and Crypto Market Drop After Trump’s Tariff Announcement
Bitcoin (BTC) fell nearly 10% on Friday. The entire crypto market lost about $280 billion in value. This happened after US President Donald Trump said tariffs on Chinese goods would double starting November 1.
Details of Trump’s Tariff Plan
Trump posted on Truth Social about the tariff increase. He called China “hostile” and accused it of trying to control the market by limiting exports of rare-earth metals. He also said more countermeasures against China might follow.
Impact on Crypto and Other Markets
- Bitcoin dropped over 10%, falling below $108,000 briefly.
- Ethereum (ETH) fell 18% to $3,540.
- XRP dropped 32% to $1.87.
- Solana (SOL) declined 20% to $174.
- Memecoins fell 35%, and the AI sector dropped 30%.
Heavy liquidations occurred on Friday, causing the Coinglass platform to crash briefly. This was one of the biggest single-day losses in crypto for 2025.
Before the drop, a major Bitcoin wallet opened $1.1 billion in short positions on BTC and ETH. It earned over $27 million in unrealized profits, according to data from Lookonchain.
Other risk assets also fell. The S&P 500 dropped 2.7%, losing 182 points. The Dow Jones fell 1.9%, down 878 points.
Similar market drops happened before after Trump’s tariff announcements in April and August. Experts say the new tariffs could slow down crypto’s gains seen since early October.
