The price of Bitcoin fell to around $108,000 today as escalating US-China trade tensions and tariff talks sent shockwaves through global markets.
President Donald Trump posted on Truth Social today that China has announced “aggressive” and “unprecedented” export controls on nearly all products, affecting all countries starting November 1, 2025. In response, Trump said the United States will impose a 100% tariff on Chinese goods and impose export controls on critical software starting on the same date.
The price of Bitcoin plummeted following the news, dropping from around $117,000 in the early afternoon to less than $108,000. At the time of writing, bitcoin price is back in the $113,000 range with high volatility.
At times, the price of bitcoin has dropped by around 10% while many other cryptocurrencies have dropped by 20-40%.
Markets react to US-China trade relations
Global markets saw a sell-off today following President Trump’s announcement of plans to sharply raise tariffs on Chinese goods. The move came in response to Beijing’s new restrictions on rare earth exports, which the US president accused China of using to “monopolize” critical resources.
China’s tough export controls now extend to foreign-made products that contain or have been processed using Chinese rare earths, signaling a serious escalation in the trade dispute.
The expansion of the policy – targeting the defense, semiconductor and artificial intelligence sectors – has sparked concerns about a shock to the global supply chain.
Risky assets tumbled today, with the S&P 500 down 2% and the Nasdaq down 2.7%. Trump also canceled a scheduled meeting with Xi Jinping at APEC, vowing to “financially counter” China’s move.
Trump previously described Beijing’s actions as “sinister and hostile”, arguing that the United States holds even greater power but has refrained from using it – until now.
Cryptocurrency-related stocks, such as Circle (CRCL), Robinhood (HOOD), Coinbase (COIN), and MicroStrategy (MSTR), fell 3%-12% on the day.
Bitcoin price reaction
Bitcoin started October strong, hitting new all-time highs above $126,000 during the first week of the month before falling back into the $121,000 range in recent days.
Market analysts say the rally reflects what many describe as the “euphoria phase” of the ongoing bull cycle, a phase historically marked by rapid price acceleration and growing retail enthusiasm.
If past cycles are any indication, current momentum could push Bitcoin towards the $180,000 to $200,000 range before sentiment cools.
The leading cryptocurrency has risen more than 30% since the start of the year, fueled by steady inflows into US-listed Bitcoin ETFs and a resurgence in investor confidence in the digital asset market.