The cryptocurrency market is in a bloodbath after US President Donald Trump slapped a hefty 100% additional tariff on Chinese tech products, reigniting the trade war flames between the two global powers. On October 10th, the market wiped out more than $19 billion in wealth, and the trend has continued on October 11th as well. On Saturday, Bitcoin crashed between 8-9% and has erased its $112,000 mark, while its rival digital coins Ethereum, BNB, XRP, Solana, and even Elon Musk's favorite Dogecoin nosedived by 11% to 21%. Their weekly losses have extended significantly.
Bitcoin Price Crashed:
At the time of writing, Bitcoin traded at $111,701.83 on CoinMarketCap, nosediving by 8.2%. Its market value has plunged by a whopping 8.3% to $2.22 trillion. Due to the latest decline, Bitcoin is down by 11.5% from its all-time high of $126,198.07 that was touched earlier on October 7, 2025.
Bitcoin's 7-day performance is now down by nearly 9%.
Ethereum Price:
Following the bearish trend, Ethereum plunged by a massive 12% to trade around $3,835, while its market cap dropped by 12% to $462.86 billion. Ether has tumbled by 22.53% from its all-time high of $4,953.73 that was recorded on August 25. Its 7-day performance is now lower by 15%.
Other Cryptocurrencies:
In the past 24 hours, cryptos like BNB plunged by 11%, followed by XRP that dropped by 12%. Solana and Dogecoin slipped by 15% and 22%. Meanwhile, Cardona plummeted by over 17%. TRON crypto was down by nearly 5%.
Overall, the global cryptocurrency market has crashed by nearly 10% to $3.74 trillion valuation. The sentiment consensus in this market is FEAR currently. Despite the latest crash, Bitcoin continues to hold dominance with 59.3% weightage in the market, followed by Ethereum with 12.3% weightage. Other cryptos accounted for 28.3% weightage.
Due to the mounting tensions between US and China, over 7 billion dollars of wealth was wiped out in crypto market in a span of one hour. And the bears and fear kept knocking cryptos out like dominos, leading to more than $19 billion mind-boggling rout and impacting over 1.6 million traders worldwide. This data is cited by Bloomberg.
Why Crypto Market Crashed After Trump's New Tariff Threat?
According to crypto enthusiast and tracker, Sasha on CoinMarketCap, said, Donald Trump announced 100% tariffs on Chinese goods starting Nov 1, triggering the largest liquidations since 2020 - $9.5B in one hour. Markets saw it as the start of a new trade war.
He explained that Bitcoin's 0.89 correlation with the S&P 500 made it vulnerable to the equity sell-off. Hence, where gold picked up momentum due to the latest trade war, Bitcoin took the beating of profit-booking.
Not just that, Sasha cited data revealing after a strong start to October (up to $ 1.2B per day), ETF inflows dropped to $198M - a sign of institutional pause. Still, total ETF AUM ($161B) remains near record highs, softening panic risk.
"This isn't a crash, but rather a broad risk revaluation after a geopolitical shock," Sasha's note added, "If ETF inflows recover and equities stabilize, BTC could quickly regain lost ground.'' He said, watch China's response and Monday's ETF flow data.
In his technical outlook, he believes, Bitcoin may broke key supports at $117,900 (38.2% Fibonacci) and 30-day SMA ($116,490). RSI fell to 32 - oversold territory where rebounds often begin. Current supports: $109-$108,500, near the 200-day EMA.
Trump Vs China Tariffs: {image- trumpchinatariffs11-1760176639.jpg www.goodreturns.in}
Rippling yet another trade chaos with its nemesis China, US President Trump said ''It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025, impose large scale Export Controls on virtually every product they make, and some not even made by them.''
Trump emphasized this affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations.
Thereby, he added, ''Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also on November 1st, we will impose Export Controls on any and all critical software.''
Now, all eyes are on China's next action against the latest Trump tariffs. However, it needs to be noted that the two countries have been involved in a back and forth series of tariff spat during Trump's rule.
Following Trump's new tariffs on Chinese goods, Wall Street crumbled sharply. The Dow Jones Industrial Average ended at 45,479.60, down by nearly 2%. S&P 500 plunged by 2.7% to close at 6,552.51, and the tech-heavy index Nasdaq Composite took the worst hit by crashing nearly 3.6% to close at 22,204.43.
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