Crypto Markets Crash As US-China Trade War Officially Begins With Trump’s 100% Tariff

Core Insights - The global cryptocurrency market experienced a significant decline, with a total market capitalization dropping from approximately $4.25 trillion to $4.05 trillion, resulting in a loss of nearly $200 billion in value [2] - Bitcoin saw a sharp decrease of 10%, falling from $122,000 to $107,000, while other cryptocurrencies like Ethereum, XRP, and BNB experienced declines of over 15% [2] - The announcement of a 100% tariff on all Chinese imports by the US President marks a shift from rhetoric to actual policy, escalating trade tensions and impacting the technology supply chain [4][5] Market Reaction - The immediate market turmoil was triggered by the announcement of tariffs and the cancellation of a planned meeting between US and Chinese leaders, leading to a sell-off that erased about $125 billion in crypto value and over $800 million in leveraged positions [3][6] - The escalation of trade tensions has led to a broad "risk-off" sentiment across various asset classes, including equities and commodities, as market participants react to the uncertainty [5] Future Outlook - The cryptocurrency market is bracing for volatility, with traders closely monitoring potential responses from Beijing and the possibility of reopening negotiations before the tariff implementation date of November 1 [7]