Crypto Crash: Bitcoin, Ethereum Plunge After Trump Tariff
Crypto Market Crash: Bitcoin, Ethereum, Trump Tariff, China Software Ban, Rare Earth Minerals, CoinMarketCap, Cryptocurrency
The global crypto market plunged into chaos on October 10, 2025, after U.S. President Donald Trump announced a sweeping 100% tariff on critical software imports from China. This aggressive trade move, triggered by China’s rare earth export restrictions, sent shockwaves through Bitcoin, Ethereum, and other major cryptocurrencies. According to CoinMarketCap, Bitcoin dropped below $112K, Ethereum fell over 15%, and billions in crypto liquidations followed. Investors across India, especially in Hyderabad and Telangana, scrambled for updates as the U.S.-China tech war rattled digital asset markets worldwide.
Crypto Market Crash: What Triggered the Bloodbath?
On October 10, 2025, the global crypto market witnessed a sharp downturn after US President Donald Trump declared a 100% tariff on “any and all critical software” imports from China. This announcement came in response to China’s decision to impose export restrictions on rare earth minerals, which are vital for tech manufacturing
The impact was immediate and severe. Bitcoin dropped by 8.40% to $111,841.14, while Ethereum plunged 15.62% to $3,792.31. The total crypto market cap shrank drastically, with billions wiped out in hours
Top 5 Cryptocurrencies: Price & Market Cap Update
Here’s how the leading tokens performed during the crash:
| Cryptocurrency | Price Drop | New Price | Market Cap Drop | New Market Cap |
|---|---|---|---|---|
| Bitcoin | -8.40% | $111,841.14 | -8.12% | $2.23 trillion |
| Ethereum | -15.62% | $3,792.31 | -13.81% | $456.97 billion |
| Tether | -0.10% | $1.00 | -0.28% | $178.97 billion |
| Binance Coin | -6.60% | $1,094.09 | -12.91% | $152.27 billion |
| XRP | -22.85% | $2.33 | -16.31% | $140.19 billion |
Sources: CoinMarketCap
Trump’s Statement: What He Said About China
In a post on Truth Social, Trump expressed outrage over China’s “extraordinarily aggressive” trade stance. He accused Beijing of sending a “hostile letter to the world” and planning “large-scale export controls” on nearly all products
“It is absolutely unheard of in international trade, and a moral disgrace,” Trump wrote.
He added that starting November 1, 2025, the US would impose a 100% tariff on Chinese imports and enforce export controls on critical software.
Global Impact: Why Crypto Reacted So Sharply
The crypto market is highly sensitive to geopolitical tensions. Trump’s tariff announcement raised fears of a tech supply chain disruption, especially in blockchain infrastructure and mining hardware.
China’s rare earth minerals are essential for producing semiconductors and chips used in crypto mining rigs. With export controls in place, costs could rise, and supply could tighten.
Moreover, investors panicked over the possibility of further restrictions on crypto-related software, especially those developed in China.
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