- Trump warns of massive China tariffs over rare-earth exports from November 1st , crashing crypto markets.
- Bitcoin fell 11% and XRP 33% as risk-off sentiment spread across global digital assets.
- Investors await official tariff details and China’s reply as volatility deepens into Q4 2025.
The cryptocurrency market collapsed after President Donald Trump warned of new tariffs on Chinese imports. He posted the remarks on Truth Social, accusing China of “hostile” trade tactics and trying to corner rare-earth exports vital to U.S. industries.
His statement reignited fears of another trade war, sparking panic across financial markets. Bitcoin, Ethereum, and major altcoins fell sharply within hours. The selloff wiped out billions from total crypto market capitalization as traders rushed out of risk assets.Across social media, traders described the move as the fastest liquidation wave since March.
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Bitcoin, Altcoins Post Double-Digit Losses
When the news ran fresh, Bitcoin plunged 11.12% to $107,891.67 as traders fled. Ethereum saw an even steeper decline of 17.62%, falling to $3,585.01. Binance Coin followed closely, dropping 17.16% to $1,037.41, while Solana tumbled 20.35% to $174.91. XRP was hit the hardest, crashing 33.35% to $1.8647.
Besides cryptocurrencies, U.S. equities and commodities also experienced increased volatility. Market participants linked the decline to rising fears that a new round of tariffs could tighten global liquidity and harm cross-border trade flows.
Analysts warned that new tariffs could tighten global liquidity and disrupt cross-border trade. They noted that risk-off sentiment deepened as inflation expectations rose and tech supply chains came under pressure.
Rare-Earth Tensions Escalate Economic Anxiety
Trump’s post focused on China’s reported plan to limit rare-earth exports, which are key materials for semiconductors and clean energy.
The move, if implemented, could strain supply chains and inflate production costs worldwide. Hence, investors sought safety in cash and short-term bonds, withdrawing capital from high-volatility assets such as cryptocurrencies.
Trump also hinted at a “massive increase” in tariffs on Chinese goods.That threat rattled both Wall Street and crypto markets, echoing the 2018 trade war, when similar rhetoric drove global volatility. Analysts now warn that renewed tariffs could stall growth just as markets price in softer monetary policy.
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Source: https://coinedition.com/trumps-china-tariff-threat-crashes-crypto-markets-worldwide/