BTC Tests $104K as President Trump Imposes Sudden 100% Tariff on China

The crypto market witnessed a massive price drop on Friday, with its entire capitalization dropping by over 10% within a few minutes to reach $3.76 trillion. A key factor resulting in the sharp dip is a recent announcement by U.S. President Donald Trump via his social media platform, Truth Social.

100% Tariff on China

President Trump hit the global financial market with an unexpected increase in tariffs on trade with China. Notably, Trump revealed that China had sent a “hostile letter” to all countries worldwide to impose large-scale Export Controls on all of its products, starting on November 1, 2025. He referred to the move as a “moral disgrace in dealing with other Nations.” 

Considering the implications of such a move by the Asian-based commerce king, Trump announced that the U.S. will impose a 100% Tariff on China, over and above any Tariff they were paying prior to the change. The U.S. will also enforce Export Controls on all critical software.

Crypto Market Reacts

Following the massive Tariff increase announcement, the crypto market tumbled and crumbled to unexpected lows, leaving many investors and traders in enormous losses. On-chain data shows that the world’s leading crypto, bitcoin (BTC), which has been on the downtrend since Tuesday, dipped by over 12% within an hour, moving from $117,000 to $104,500, according to CoinMarketCap data. Consequently, leverage traders with open positions on BTC lost approximately $2.5 billion within four hours. 

Ethereum (ETH) also reacted to the news and dipped by over 22%, from around $4,350, its Friday opening price, to $3,350. Traders who held open leverage positions on the crypto lost approximately $2 billion within four hours.

Remarkably, over 1.5 million traders were unexpectedly hit by the news and thrown out of the market as the prices of many cryptocurrencies plunged massively. The largest single liquidation order occurred on a BTC-USDT pair on the HTX exchange, resulting in a loss of $87.53M for the trader.

At the time of writing, the market has witnessed significant price recovery as bullish investors saw the dip as an opportunity to purchase crypto assets at lower prices. BTC is almost back at $114,000. ETH has gained ground above $3,800. BNB, which dipped to $880, is back above $1,100. SOL, which hit $160 has recovered close to the $200 level. 

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