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On October 10, 2025, President Donald Trump took to Truth Social to deliver a bombshell announcement that sent shockwaves through global markets — and the crypto world was no exception. Declaring a massive escalation in the US-China trade war, Trump announced a staggering new 100% tariff on all imports from China, effective November 1 or sooner. This tariff would be in addition to the already painful 30% tariffs, doubling the burden on Chinese goods entering the US. The president justified this tough stance as a response to China's "extraordinarily aggressive" export controls over rare earth minerals and critical software, essential components in high-tech industries worldwide. He even hinted at canceling his planned meeting with the Chinese President at the upcoming APEC summit, signaling a hardening of tensions.
The crypto market, a complex stage where fortunes rise and fall with every headline, reacted swiftly and dramatically to Trump's pronouncement. Initially, the market took a sharp hit. Bitcoin plunged over 10%, dropping below $110,000, as traders panicked over the potential economic fallout from increased trade barriers and geopolitical uncertainty. Altcoins like Ethereum, XRP, and Solana crashed even harder, with some losses reaching 30%, reflecting the high leverage and sentiment sensitivity in crypto trading. Over $7 billion in leveraged positions were liquidated in a brief crypto market meltdown reminiscent of the uncertainty during the early Covid-19 crash.
But the drama was not over. Later that day, during Trump’s White House press briefing—where he surprisingly focused more on other topics such as TrumpRX and peace efforts in Gaza rather than China—the crypto market experienced a flash crash followed by a quick recovery. Prices dipped briefly to new lows, then started to climb back, riding waves of volatility and traders reassessing the news. This rollercoaster reflects the crypto market’s typical nature: highly reactive, equally resilient, and primed for quick reversals.
What lies ahead? The weekend could see a rebound as the market digests this escalation. Technical analysis shows Bitcoin resting on strong support levels near $108,000, with potential to rally toward $124,000-$140,000 if the political tension does not worsen further. The psychological shock of Trump's tariff surge may give way to bargain hunting. Historically, October has been a favorable month for cryptocurrencies, and upcoming regulatory and geopolitical developments could add further twists to the plot. However, the stage remains set for volatility, as trade war fears hang heavy and market players weigh every Trump tweet and Washington development.
In this high-stakes geopolitical drama, President Trump is the leading actor whose every move sends ripples through the crypto market stage—a reminder that in today’s interconnected world, politics and digital assets are intricately locked in a suspenseful dance.
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