Bitcoin plunges to $104,782 as President Trump escalates US-China trade war

Bitcoin drops to $104,782 after President Trump announces 100% tariffs on China, shaking global financial markets and triggering a massive sell-off.

A new shockwave hits global markets

Bitcoin fell sharply to $104,782 — its lowest level in over a month — after U.S. President Donald Trump announced a 100% tariff hike on Chinese imports and new export restrictions on strategic software.

The move sent shockwaves through global markets, wiping out trillions in value from both stocks and cryptocurrencies within hours, as investors fled from risk assets amid renewed fears of a full-blown trade war.

Trump ignites “Trade War 2.0”

According to Reuters and The Wall Street Journal, Trump posted on Truth Social on October 10, accusing China of becoming “increasingly hostile toward the world,” and threatening to impose 100% tariffs on all Chinese goods entering the U.S.

The President’s remarks were seen as a direct retaliation against Beijing’s new restrictions on rare earth exports — critical materials used in semiconductors, electric vehicles, and defense technology. China currently controls about 70% of the world’s rare earth supply.

“We cannot allow China to hold the world hostage with its monopoly on resources,” Trump wrote.

The statement immediately triggered a global sell-off: the S&P 500 dropped 2%, the Nasdaq plunged 3.5%, and panic rippled across crypto markets.

Bitcoin sell-off deepens as investors flee risk

Analysts said the 8.4% plunge in Bitcoin was a direct response to heightened risk aversion and cascading liquidations in the derivatives market.

Key factors behind the decline include:

Rising fears of a renewed U.S.-China trade war;

Institutional investors shifting funds from crypto into U.S. dollars and Treasuries;

A wave of leveraged positions being liquidated, triggering automatic sell orders across exchanges.

Other major cryptocurrencies followed suit — Ethereum fell 5.8% to $3,637, while Solana and XRP dropped more than 7%.

Global stocks and crypto both sink

It wasn’t just Bitcoin that took a hit. Wall Street experienced one of its worst sessions in months:

Dow Jones fell 879 points (-1.9%);

Nasdaq Composite slid 3.56%, its steepest drop since April;

Nvidia (-5%), AMD (-8%), Apple (-3%), and Tesla (-5%) all ended deep in the red.

According to Bespoke Investment Group, about $2 trillion in market capitalization evaporated from U.S. equities within hours — showing just how powerful one post from the President can be.

Why Bitcoin reacts so sharply to U.S.-China tensions

While Bitcoin has long been called “digital gold,” its growing correlation with risk assets is increasingly evident.

Three main reasons explain this sensitivity:

Institutional investors now dominate trading volumes, linking Bitcoin to global fund flows.

Heightened geopolitical tension reduces risk appetite, pushing investors out of crypto.

Concerns about U.S. export controls on AI and blockchain-related software create uncertainty around Web3 innovation.

Trump’s next move: Tariffs “100% or higher”

After the markets closed, Trump doubled down — saying he would impose tariffs of 100% “or more” and restrict exports of “any and all critical software.”

Analysts warn this could reignite global recession fears. However, some suggest this may be a negotiation tactic, ahead of Trump’s expected meeting with Chinese President Xi Jinping at the APEC Summit later this month.

Expert insight: “Don’t panic sell”

Jay Woods, Chief Market Strategist at Freedom Capital Markets, said:

“This panic-driven reaction is likely temporary. Investors should see it as a potential buying opportunity rather than a reason to sell.”

Many veteran investors believe a repeat of the April rebound is possible if Trump softens his stance or if trade talks yield progress.

Global implications and near-term outlook

If tensions continue to escalate:

Asian markets could face mounting pressure, particularly export-driven economies.

Prices of oil and rare metals may surge.

Bitcoin could remain volatile within the $100,000–$110,000 range.

Conversely, any sign of easing tensions could spark a swift recovery in crypto, supported by ongoing institutional inflows into AI and Web3 sectors.

Conclusion: When a single post shakes the world

From one short social media post, $2 trillion in global value vanished — a stark reminder that geopolitics and finance are inseparable.
Even a decentralized asset like Bitcoin cannot escape the gravitational pull of real-world power plays.

FAQ – Frequently Asked Questions

1. Why did Bitcoin drop after Trump’s post?
→ Because investors fled from risk assets amid fears of a renewed U.S.-China trade war.

2. Is this a buying opportunity?
→ Possibly. If tensions ease, Bitcoin could rebound sharply — but risks remain high.

3. How do U.S.-China tensions affect crypto markets?
→ They reduce liquidity, increase volatility, and trigger short-term capital outflows.

4. What’s the short-term Bitcoin forecast?
→ Likely to fluctuate between $100,000 and $110,000, depending on political developments and market sentiment.