On October 10, U.S. President Donald Trump’s announcement of 100% tariffs on China led to a historic collapse in the cryptocurrency market. The decision marked a new phase in the U.S.-China trade war and sparked panic among investors.
Bitcoin fell 8.4% to $104,782, while Ethereum dropped 5.8% to $3,637. Overall, more than $19 billion was wiped from the crypto market, and 1.6 million traders lost their positions.
Trump’s move is seen as part of ongoing trade tensions that began with China restricting exports of rare earth minerals. The situation shook not only the crypto market but also traditional financial markets: the S&P 500 dropped 2.7%, and the Nasdaq fell 3.6%.
Analysts warn that such trade conflicts could have negative effects on the global economy and drive investors away from riskier assets. Further market volatility is expected.
