The bitcoin price slipped below $102,000 on Friday after United States President Donald Trump announced new tariffs on Chinese imports starting from November 1 (or sooner), on top of existing tariffs.
The U.S. president declared a retaliatory 100% tariff on all goods imported from China, citing Beijing’s tighter export controls on rare earth elements, and new export restrictions on U.S. software.
“Starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” Trump said in a post on Truth Social.
Coming shortly after Senator Cynthia Lummis said funding for the U.S strategic bitcoin reserve can start anytime, the new Trump China tariff has sent shockwaves through both traditional and crypto markets.
The announcement revived fears of another trade war between the world’s two biggest economies and triggered a wave of selling across risk assets.
Trump’s New China tariff sends ripples through global markets
Following Trump’s decision, major U.S. stock indexes plunged with over $1.65 trillion being wiped out on Friday. Particularly, the S&P 500 fell 2.7%, the Nasdaq Composite dropped 3.6%, and the Dow Jones Industrial Average lost nearly 2%.
Bitcoin mirrored the risk-off sentiment, dropping approximately 10% to the $102,000 level before rebounding to the $113,000 level at the time of writing.
Analysts say the correlation highlights Bitcoin’s growing sensitivity to global macro events.“Bitcoin is behaving more like a risk asset than a hedge,” said one market strategist.
“Whenever geopolitical tension rises, traders rush for safety and crypto feels the impact first,” he added.
The steep drop triggered about $10 billion in liquidations across major crypto exchanges. This cascade effect deepened the fall as automated sell orders were triggered.
The Crypto Fear and Greed Index also slipped into “extreme fear,” signaling growing unease among investors. Moreover, on-chain data also shows short-term holders moving coins to exchanges, a sign of selling pressure.
Technically, BTC broke below a critical support zone at $109,000. Accordingly, traders and investors now eye the $105,000–$106,000 range as the next key level to hold. A failure there could invite further downside toward $95,000.
What this means for crypto investors
While the drop reflects bitcoin’s vulnerability to macroeconomic shocks, some long-term investors view it as a potential buying opportunity. Historically, sharp selloffs tied to global news have been followed by gradual recoveries once markets stabilize.
“Every macro scare shakes out weak hands,” said a CoinMetrics analyst. “But long-term data shows accumulation often increases at times like these.”
However, crypto traders should watch how China responds and whether Trump’s tariff announcement turns into a prolonged trade conflict.
As a matter of fact, any retaliatory trade measures from China could further impact risk assets, including crypto, negatively.
In the coming days, all eyes will be on whether BTC can hold above $105,000 or if further volatility lies ahead as the U.S.–China trade tensions unfold. Meanwhile, monitoring exchange reserves and funding rates can offer clues to short-term direction in the crypto market.
