The prices of Bitcoin, Ethereum and most other cryptocurrencies collapsed after US President Donald Trump said on October 10 that he would increase US tariffs by 100% on “all critical software” imported from China.
The move came after China announced limits on the export of rare earth minerals, which are critical to the manufacturing sector, particularly technology, according to a Reuters report.
Bitcoin collapses around 8%, Ethereum down 12%
As of 6:10 a.m., at the time of writing, Bitcoin was down 7.60 percent at $1,12,592.31 and Ethereum was down 12.24 percent at $3,845.92, according to CoinMarketCap data.
According to analysis by CoinMarketCap, the world’s largest cryptocurrency saw liquidations of $9.5 billion due to the failure of support at the $1,20,000 level.
Why Did the Crypto Market Crash? What Trump said…
In an article on Truth Social, Donald Trump announced that he was unhappy with China’s stance on the export of rare earth minerals and called it an “extraordinarily aggressive stance.”
Donald Trump wrote: “We just learned that China has taken an extraordinarily aggressive stance on trade by sending an extremely hostile letter to the world, declaring that it will, beginning November 1, 2025, impose large-scale export controls on virtually every product it makes, and some that it doesn’t even make. This affects EVERY country, without exception, and was obviously a plan conceived by them years ago. It’s absolutely unheard of in international trade, and a moral shame in the world. deal with other nations.
“Based on the fact that China has taken this unprecedented stance, and speaking only on behalf of the United States, and not other countries that have been similarly threatened, beginning on November 1, 2025 (or earlier, depending on subsequent actions or changes taken by China), the United States of America will impose a 100% tariff on China, in addition to any tariffs it currently pays. Also on November 1, we will impose controls for export on all critical software,” he added.
He warned: “It is impossible to believe that China would have taken such a step, but it did, and the rest is history. »
