Bitcoin descended more than 8% on Friday, October 11, plunging to $104,782, as global markets reeled from dramatic escalation in U.S.-China trade tensions as President Donald Trump has imposed new tariffs and tech exports controls.
Following Trump’s announcement of a 100% tariff on all Chinese exports to the U.S. in addition to the new restrictions on “any and all critical software” developed in the U.S., the world’s largest cryptocurrency by market value faced huge losses.
These new tariffs will be implemented from November 1, marking the most severe rupture in U.S.-China trade relations since the early phases of the 2018 trade war.
The announcement comes following Beijing’s recent expansion of export controls on rare earth minerals, materials vital to technology, defense, and electric vehicle manufacturing.
Trump also imposed additional port fees on U.S. ships that will be implemented from October 14, 2025.
Trump responded to China’s export move, “I thought it was very, very bad. For every element they monopolize, we have two. But we have to respond.”
Markets swiftly reacted:
- Bitcoin fell 8.4%, mirroring broader investor flight from risk.
- Ethereum dropped 5.8%, trading at $3,637.
- S&P 500 slid over 2%, its biggest one-day drop since April.
- Nasdaq shed 3.56%, closing at 22,204.43.
- Semiconductor stocks nosedived, with the PHLX Semiconductor Index down 6.3%.
- Gold and U.S. Treasuries rose as investors sought safe havens.
Crypto, tech lead the sell-off
Cryptocurrencies and major tech stocks bore the brunt of the sell-off:
- Nvidia, Tesla, Amazon, and AMD all fell more than 2% in after-hours trading.
- Qualcomm dropped 7.3% amid a new Chinese antitrust investigation.
- U.S.-listed Chinese firms, including Alibaba, JD.com, and PDD Holdings, declined 5.3% to 8.5%.
The market crash wiped hundreds of billions in market capitalization and reignited concerns that newly imposed tariffs and export controls could disrupt global supply chains specially in the tech and semiconductor sectors.
Analysts warn of prolonged volatility
Cryptocurrency investors are at a crossroad now that Bitcoin is trading at almost 20% below its September highs.
Some analysts consider this sentiment-driven pullback, but other analysts caution that as geopolitical tensions continue to increase, it may morph into a bigger risk-off environment including not only equities and commodities but also digital assets.
In the meantime, all eyes are on the White House, Beijing, and the upcoming earnings season which starts Tuesday, October 14, with major banks reporting.
Current analyst estimates show that Q3 S&P 500 earnings will grow by 8.8%.
Whether diplomacy prevails or whether Friday marked the beginning of a longer trade standoff markets appear braced for more volatility ahead.