The price of Bitcoin fell sharply below $110,000 on Friday after U.S. President Donald Trump announced a 100% tariff on Chinese imports. The move, aimed at countering China’s new export restrictions on rare earth minerals critical for semiconductor production, sent shockwaves through both traditional and cryptocurrency markets.

Trump stated on Truth Social, “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.”

Bitcoin’s price slumps amid market shock

Following the announcement, Bitcoin futures on Binance dropped to $102,000, marking the lowest level since June. On Coinbase, spot prices touched $107,000, while over $9.4 billion in total crypto market positions were liquidated within 24 hours, according to CoinGlass — $7.15 billion of which came from leveraged long positions.

Ethereum and Solana also fell sharply, down 12% and 14% respectively, while analysts at Hyblock Capital noted that “global 2x leverage on most altcoins was totally wiped out.”

Tariff tensions hit crypto and tech sectors

The tariff escalation adds pressure to global supply chains, particularly in technology. Rare earth minerals are vital for producing chips used in AI, high-performance computing, and crypto mining hardware. With both nations now restricting access to critical components, market participants fear further strain on innovation and production costs.

At the same time, Washington’s broader campaign to limit Chinese tech exports aims to reduce reliance on foreign manufacturing — but also risks creating global instability in related sectors.

Crypto market turns red

By Friday evening, the global crypto market capitalization had fallen to $3.64 trillion, down nearly 12% in 24 hours. Bitcoin’s slide reflected broader investor uncertainty as fiscal and geopolitical tensions intensified between the U.S. and China.

Despite this downturn, analysts suggest that volatility could continue as markets absorb the potential long-term impact of escalating trade measures on digital assets and global liquidity.

Sources:

https://cointelegraph.com/news/trump100-tariffs-china-bitcoin-plummets-110k

https://truthsocial.com/@realDonaldTrump/posts/115351840469973590