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Coinwy > Blog > Crypto > Bitcoin > U.S. Tariffs Spark Bitcoin Selloff, Impact Crypto Markets
Bitcoin

U.S. Tariffs Spark Bitcoin Selloff, Impact Crypto Markets

Thiago Alvarez
Last updated: October 23, 2025 2:05 am
Thiago Alvarez
Published: October 23, 2025
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U.S. Tariffs Spark Bitcoin Selloff, Impact Crypto Markets
U.S. Tariffs Spark Bitcoin Selloff, Impact Crypto Markets
Key Takeaways:
  • Main event, leadership changes, market impact, financial shifts, or expert insights.
  • Trump confirms 100% tariffs on Chinese goods via Truth Social.
  • $200 billion evaporates in crypto market cap within hours.

In October 2025, the U.S.-China trade dispute intensified following Donald Trump’s announcement of 100% tariffs on Chinese goods, impacting the cryptocurrency market significantly.

The heightened tariffs caused Bitcoin’s value to plummet sharply, reflecting broader economic tensions and potential volatility in the cryptocurrency sector.

The U.S.-China trade dispute escalated in October 2025 after Trump announced 100% tariffs on Chinese goods. This decision led to a severe Bitcoin selloff and affected the broader crypto market.

Donald Trump, Former President, Current Republican Candidate, “China has announced aggressive and unprecedented export controls on nearly all products, affecting all countries starting November 1, 2025…the U.S. will impose a 100% tariff on Chinese goods and enforce export controls on critical software from the same date.”

Key players involved include Donald Trump and Chinese entities implementing new export controls. A large Bitcoin holder opened a short position worth $234 million shortly before the announcement.

Bitcoin’s price dropped from $122,000 to below $103,000, causing significant impacts on market stakeholders. Crypto exchanges like Binance and Coinbase recorded exceptional volatility and reduced liquidity.

The tariffs impact crypto industries by disrupting supply chains, primarily due to China’s export controls on rare earths. Financial markets experienced volatility, with the total crypto market cap losing $200 billion soon after the tariffs.

Crypto experts emphasized the fragility of crypto as a risk asset. Former BitMEX CEO Arthur Hayes noted: “Rare earths = chips = mining gear. If China turns the tap off, BTC mining margins get REKT.”

Potential regulatory responses were noted by the Federal Reserve and experts underscored the interconnectedness of global markets. Historical events, like previous trade wars and China’s mining crackdowns, show similar patterns in crypto volatility.

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