The global crypto market plunged again on Friday evening after US President Donald Trump announced drastic new tariffs and export controls on China, raising tensions to their highest level since 2019.
In a statement posted online, Trump said the United States would impose 100% tariffs on all Chinese imports starting Nov. 1, citing what he called an “extraordinarily aggressive” move by Beijing to impose broad export controls on “virtually every product they make.”
The announcement immediately triggered turbulence in the markets. In a few hours, the total market capitalization of cryptocurrencies increased from approximately $4.25 trillion to $4.05 trillionalmost erasing Worth $200 billionaccording to CoinGecko.
Bitcoin crashed 10%, from $122,000 to $107,000. Ethereum, XRP and BNB fell more than 15%.
This second wave of losses comes just hours after Trump’s earlier message canceled a planned meeting with Chinese President Xi Jinping and threatened a “massive” increase in tariffs.
This initial statement caused the first massive sell-off, wiping out approximately $125 billion in crypto value and over $800 million in leveraged positions.
The latest statement, however, signals a move from rhetoric to politicsdoubling tariffs to unprecedented levels and expanding the dispute to include software and technology controls.
This decision effectively confirms a large-scale commercial confrontationtriggering a broad “risk-free” pullback in stocks, commodities and digital assets.
Market watchers warn that the combined impact of tariffs and export restrictions could strain the global technology supply chain – particularly in semiconductors, AI and blockchain infrastructure – deepening uncertainty in the sectors that underpin digital assets.
The timing of this escalation took markets by surprise, intensifying liquidation pressure on leveraged positions.
Bitcoin’s decline is now testing key psychological levels, while altcoins continue to underperform amid a sell-off.
For now, traders are bracing for a volatile weekend. Where the market moves next will depend on whether Beijing responds or is willing to reopen negotiations before November 1.
Read original story Crypto markets collapse as US-China trade war officially begins with Trump’s 100% tariff by Mohammad Shahid at beincrypto.com
