Bitcoin Price Touches $101K As Trump’s 100% Tariff On China Shakes Market
Bitcoin plunged to $101,000 on October 10, 2025, following major market turmoil triggered by U.S. President Donald Trump’s announcement of a 100% trade tariff on Chinese imports. The crypto market experienced the largest single-day liquidation event in history, wiping out nearly $10 billion in open interest.
Trump Imposes 100% Tariff on Chinese Imports
In a statement made on Truth Social, President Donald Trump declared a sweeping 100% tariff on all Chinese goods, escalating tensions in an already volatile global trade environment. The move comes in retaliation to China’s announcement of export restrictions on rare earth minerals essential for semiconductor production.
“It has just been learned that China has taken an extraordinarily aggressive position on trade… imposing large-scale export controls on virtually every product they make,” Trump posted.
The new tariffs are set to take effect ahead of China’s restrictions, scheduled for November 1, 2025. Trump also hinted at imposing U.S. controls on critical software exports and remains open to renegotiations if China reverses course before the deadline. The announcement marks an escalation of the trade conflict that originally intensified in April 2025, when initial tariff threats led to a market-wide downturn.
Market Impact and Record Liquidations
The crypto markets responded swiftly and sharply to the geopolitical tension. Bitcoin, after struggling throughout the day, saw a steep decline to $101,000. Broader crypto markets followed suit, with high-cap altcoins also suffering double-digit losses.
According to CoinGlass, nearly $10 billion in open interest was liquidated—marking the largest single-day liquidation in crypto history. This unprecedented wipeout underscores the heightened sensitivity of digital assets to macroeconomic and geopolitical developments.
Reactions and Diplomatic Tensions
While the Trump administration maintains that the tariffs are a necessary defensive move, international markets remain on edge. Trump has expressed willingness to hold talks with Chinese President Xi Jinping to de-escalate the situation. However, no formal negotiations have been confirmed.
Global investors are closely monitoring developments, as further escalation could intensify volatility across both crypto and traditional financial markets.
Bitcoin Price Update
As of writing, Bitcoin is trading near $112,581, representing a 7.6% drop over the past 24 hours. Weekly performance is also negative, with the price down by over 8%, according to CoinGecko data. The swift decline reflects investor anxiety over potential fallout from rising trade barriers and uncertain diplomatic outcomes.
