Trump’s aggressive trade measures against China send shockwaves through global markets, dragging down cryptocurrencies like Bitcoin and Ethereum.
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| A sharp escalation in the US-China trade war under Trump’s leadership caused Bitcoin to plummet, revealing deep links between geopolitics and crypto markets. Image: CH |
Fintech Desk – October 11:
A sudden escalation in U.S.-China trade tensions under President Donald Trump has sent shockwaves through global financial markets — and cryptocurrencies are taking a direct hit.
Bitcoin, the world’s largest cryptocurrency, fell sharply on Friday, sliding 8.4% to $104,782 by 17:20 ET (21:20 GMT). Ethereum, the second-largest digital asset, dropped 5.8% to $3,637 within minutes. The declines followed Trump’s surprise announcement of 100% tariffs on all Chinese exports to the U.S., along with sweeping export controls on critical software technologies.
This aggressive retaliatory move came after Beijing imposed new export restrictions on rare earth minerals — a crucial resource for manufacturing tech hardware and electric vehicles. Trump's response signals a shift in U.S. trade policy from tough negotiation to outright economic warfare.
Bitcoin’s fall is more than just a price movement; it's a signal. Traditionally seen as a hedge against inflation or financial instability, Bitcoin is now behaving more like a high-risk asset — sensitive to macroeconomic tremors.
"The steep drop reflects mounting investor anxiety over geopolitical instability and the uncertain outlook for global trade," said one market analyst. "Crypto markets are no longer operating in a vacuum."
The U.S. stock market echoed that fear, with the S&P 500 falling over 2% on the day. Investors fled risky assets, bracing for further fallout if China retaliates — potentially targeting U.S. tech firms or cutting access to strategic minerals.
At the heart of this economic clash is control over advanced technology. Trump’s move to restrict exports of critical U.S. software to China highlights growing concerns over intellectual property and national security. However, the fallout is being felt far beyond Washington and Beijing — reaching decentralized, borderless markets like crypto.
Ironically, Bitcoin was created as a hedge against centralized economic manipulation. Yet in 2025, it’s proving vulnerable to the same forces that shake traditional markets: trade wars, political brinkmanship, and regulatory uncertainty.
As the standoff escalates, analysts warn of increased volatility in both crypto and equity markets. Bitcoin could remain under pressure, especially if broader market sentiment continues to sour or if tighter U.S. regulations follow in response to global instability.
For now, Bitcoin’s sharp drop serves as a stark reminder that cryptocurrencies are deeply intertwined with global politics and economic policy — and no longer insulated from headlines that rock Wall Street.
The world will be watching Beijing’s next move. For investors, it's clear: what happens in Washington doesn’t stay in Washington — it shakes the blockchain too.