Crypto bloodbath as Trump drops tariff bombshell on China

October 11, 2025 (MLN): Cryptocurrency prices tumbled after USA decided to impose an additional 100% tariff on China and export controls on software, according to Bloomberg.

Traders saw more than $7 billion in positions liquidated in less than an hour.

Bitcoin initially fell more than 12% after Trump made the headlines via a post on his Truth Social platform, Bloomberg reported.

The largest token, which had earlier this week reached an all-time high of more than $125,000, was trading around $113,000 as of Friday (Oct 10) evening in New York. 

Weakness in the crypto market had already been present coming into Friday. 

Over the past 24 hours, bets worth some $9 billion in bets on crypto assets have been wiped out, including $7.5bn in long positions and $1.5bn in shorts in the largest liquidation wave since at least early April. 

Smaller and less liquid tokens have been hit the hardest XRP, memecoin favorite DOGE and Cardano’s ADA fell around 19%, 27% and 25% over the past 24 hours, respectively.

“A renewed trade war between China and the US erupted on Friday, causing uncertainty in markets and a rout in risk assets,” said Ravi Doshi, co-head of markets at prime broker FalconX.

The firm’s derivatives desk saw outsized demand for downside protection throughout the day, Doshi said. 

That ratcheting up of rhetoric between the US and China sent shock waves across markets, hammering stocks, oil and crypto while spurring a dash for the perceived safety of Treasuries and gold.

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