Trump’s 100% China Tariffs Trigger Bitcoin Price Crash and $9.4B Crypto Liquidations

Introduction

Bitcoin plunged after U.S. President Donald Trump announced 100% tariffs on China, with BTC briefly crashing to $102,000 on Binance perpetual futures and spot prices hitting $107,000 on Coinbase. The escalation—tied to China’s planned export controls on rare earth minerals critical for semiconductors—sparked fears of a broader trade war, recession risk, and a crypto market sell-off. According to CoinGlass data, roughly $9.4 billion in crypto positions were liquidated in 24 hours, including $7.15 billion in leveraged longs, underscoring extreme volatility and liquidity stress across exchanges. (Cointelegraph)

Altcoins followed Bitcoin lower as risk-off sentiment spread. Ether (ETH) fell to around $3,500 and Solana (SOL) dropped below $140 on Binance futures, while global crypto market capitalization slid to approximately $3.64 trillion—down 11.8% on the day. Analysts noted that “global 2x leverage on most altcoins was totally wiped out,” reflecting aggressive de-leveraging and order book dislocations. 

Macro pressure centered on supply chains and chip access amplified the move. China’s rare earths posture threatens the semiconductor pipeline for AI, high-performance computing, and even crypto mining infrastructure, while U.S. trade and investment restrictions aim to reduce tech dependency. The combination of tariff shock, fragile liquidity, and elevated leverage increased downside tail risk for digital assets.

Background

Bitcoin fell sharply after U.S. President Donald Trump announced a 100% tariff on Chinese imports, briefly printing $102,000 on Binance perpetual futures and hitting an intraday low near $107,000 on Coinbase spot before stabilizing. The move triggered broad crypto market losses as leverage unwound and risk sentiment deteriorated on fears of an escalating U.S.–China trade war and potential recession risk.

The headline move: Bitcoin volatility and rapid deleveraging

Following the tariff announcement, BTC/USDT perpetuals on Binance briefly traded as low as $102,000, while spot BTC on Coinbase fell to about $107,000. These were the weakest levels in roughly three months, according to Cointelegraph’s live coverage (Cointelegraph).

Altcoins followed lower. Ether (ETH) slipped toward $3,500, and Solana (SOL) fell below $140 on futures markets. The breadth of the decline indicated a broad risk-off shift across crypto assets.

Per derivatives data aggregator CoinGlass, approximately $9.4 billion in crypto positions were liquidated in 24 hours, with about $7.15 billion in long positions forced out as prices fell. This is a classic “deleveraging” event where leveraged trades are closed automatically when margin requirements aren’t met.

Analysts also noted order book dislocations. Comments that “global 2x leverage on most altcoins was totally wiped out” highlight how concentrated leverage and thin liquidity can amplify fast price swings. This dynamic is common during surprise macro headlines when liquidity providers pull back.

Key terms

• Perpetual futures: A derivative without expiry that tracks the spot price via a funding rate mechanism. Sharp moves can cause cascading liquidations when highly leveraged positions are forced to close.

• Liquidation: When a trader’s collateral is insufficient to cover losses on a leveraged position, the exchange automatically closes the position, often adding momentum to the prevailing price move.

• Spot vs. futures: Spot reflects immediate buy/sell of the asset. Futures reflect derivative pricing that can trade at a premium/discount and often moves more violently due to leverage.

Macro driver: Tariffs, rare earths, and the semiconductor supply chain

President Trump announced 100% tariffs on China in response to what he described as Beijing’s move to impose large-scale export controls (including rare earth elements) effective Nov. 1, 2025. The statement, posted on Truth Social. Earlier tariff rhetoric in April had already rattled risk assets and crypto.

Rare earth minerals matter because they are crucial inputs for semiconductor manufacturing and specialized components used in AI, high‑performance computing, EVs, and certain mining hardware. Supply restrictions can tighten global chip availability and raise costs, impacting tech and crypto-adjacent industries.

For context on the strategic role of rare earths and semiconductors, see backgrounders from the U.S. Geological Survey and industry analyses.

Mutual tariff escalation can slow trade, increase input costs, and weigh on corporate margins—pressuring risk assets. Crypto, often trading as a high-beta risk asset during macro shocks, can experience amplified volatility.

Key terms

• Rare earth elements: A group of 17 metals critical to modern electronics, defense systems, and renewable technologies. While not always “rare” in crustal abundance, they are complex and costly to separate and process.

• Semiconductor supply chain: The global network of material suppliers, chip designers, foundries, and assembly/testing firms that produce integrated circuits. It’s sensitive to export controls and tariffs, which can disrupt availability and pricing.

Market breadth, sentiment, and what to watch next

The sell-off extended beyond Bitcoin. ETH and SOL registered double‑digit percentage declines intraday, and total crypto market capitalization fell roughly 11.8% to about $3.64 trillion at the time of reporting.

A large fraction of long liquidations suggests positioning was extended. After such flushes, markets sometimes stabilize as funding normalizes and open interest resets, but the path depends on follow‑through macro headlines and liquidity conditions.

Monitoring derivatives metrics like funding rates, open interest, and basis spreads can help gauge whether risk is rebuilding or receding. Data providers such as CoinGlass and The Block Data offer useful dashboards.

Near-term volatility hinges on U.S.–China policy cadence, any formal announcements on export controls, and broader risk sentiment in equities and credit. Crypto-specific flows—ETF activity, stablecoin issuance trends, and on-chain liquidity—can also modulate volatility.

Practical takeaways for readers

Risk management is crucial when macro uncertainty rises. Thinner liquidity—especially around weekends or headline-heavy sessions—can increase slippage. Consider position sizing, the use of stop-losses, and understanding liquidation thresholds if using leverage.

Different venues can print very different lows. Disparate lows between futures and spot reflect leverage and order book depth. When assessing “the low,” check multiple exchanges and instrument types before drawing conclusions.

Finally, separate signal from noise. One headline can trigger outsized moves in leveraged markets. Durable trend changes usually hinge on sustained macro developments, policy clarity, and improvements or deterioration in liquidity.