Event Background: Trump's 100% Tariff Announcement Triggers Bitcoin Flash Crash
President Donald Trump posted on Truth Social today, accusing China of announcing 'aggressive' and 'unprecedented' export controls on nearly all products, affecting all countries starting November 1, 2025. In response, Trump said the U.S. will impose a 100% tariff on Chinese goods and enforce export controls on critical software from the same date. The news sent shockwaves through crypto markets, with Bitcoin dropping from roughly $117,000 in early afternoon to below $108,000. At the time of writing, Bitcoin has recovered to the $113,000 range, but volatility remains extreme.
At times, the Bitcoin price was down roughly 10%, while many other cryptocurrencies fell 20–40%.
Global Markets and Crypto Stocks Under Pressure
Trump's tariff escalation is a response to Beijing's new restrictions on rare-earth exports, which the U.S. president accused China of using to 'monopolize' critical resources. China's tightened controls now extend to foreign-made products that contain or were processed using Chinese rare-earths, signaling a major escalation. The policy expansion — targeting defense, semiconductor, and AI sectors — sparked concerns of a global supply chain shock.
Risk assets broadly tumbled: the S&P 500 fell 2%, the Nasdaq dropped 2.7%. Trump also canceled a planned meeting with Xi Jinping at APEC, vowing to 'financially counter' China's move. Crypto-related stocks — Circle (CRCL), Robinhood (HOOD), Coinbase (COIN), and MicroStrategy (MSTR) — declined 3%–12% throughout the day.
Bitcoin Price Reaction and Outlook
Bitcoin started October on a tear, hitting fresh all-time highs above $126,000 during the first week of the month before easing back to the $121,000 range in recent days. Market analysts say the rally reflects the 'euphoria phase' of the ongoing bull cycle — a stage historically marked by rapid price acceleration and growing retail enthusiasm. If past cycles are any guide, current momentum could propel Bitcoin toward the $180,000–$200,000 range before sentiment cools.
The leading cryptocurrency has climbed more than 30% since the start of the year, fueled by steady inflows into U.S.-listed Bitcoin ETFs and a resurgence of investor confidence. Despite the short-term trade war shock, many analysts see the pullback as a potential buying opportunity within a longer-term bullish trajectory.