Bitcoin is below 110 thousand dollars, 7 billion dollars have been liquidated.

Initial Reactions Were Negative

After the President of the United States, Donald Trump, announced that he would impose a 100% additional tariff on China, a sharp decline occurred in cryptocurrency prices. Bitcoin dropped by 12% within 24 hours, falling below $110,000. Ethereum (ETH) lost 16%, XRP 20%, and Solana (SOL) 30% of its value.

Trade Tensions Are Rising

Cryptocurrencies were already following a weak trend in response to Trump's rare earth metal export controls threats. On Friday, after Trump announced the additional customs duties on Chinese goods, prices quickly plummeted. Bitcoin was trading at $117,000 right before Trump’s statements and suddenly plunged to $110,000.

Major Liquidations Occurred in the Markets

The market crash led to over $7 billion of liquidations for traders. Moreover, local tokens such as Cardano (ADA), Chainlink (LINK), and Aave (AAVE) lost up to 40% of their value. Analysts compared this sudden price movement to the pandemic crisis in 2020.

Following increased trade tensions, Trump announced that he would implement a 100% additional tariff starting November 1 and impose export controls on critical software. With this announcement, the price of Bitcoin immediately dropped by $3,000.

Reactions from Traders

The sudden drop in the markets also stirred investors' emotions. Noted trader Bob Loukas stated it was a “COVID-level crash,” while other traders noted that this decline is one of the most intense fluctuations in market history. Ram Ahluwalia commented, “Brutal day. The extreme overbought conditions triggered a sharp drop alongside Trump's news.”