Jakarta. Bitcoin tumbled 7 percent to as low as $102,000 (Rp1.69 billion) on Saturday after US President Donald Trump announced sweeping 100 percent tariffs on all Chinese imports, sending shockwaves through the global cryptocurrency market and wiping out nearly 12 percent of total crypto market capitalization in a single day.
The selloff was triggered after Trump accused Beijing of acting “very aggressively” by imposing new export controls on rare earth minerals, critical materials used in semiconductors and chip production. Writing on Truth Social, Trump said China’s move could “threaten the global economy” and vowed to retaliate with a blanket tariff starting November 1, or sooner, depending on Beijing’s next steps.
Trump’s announcement came after China tightened export restrictions on rare earth minerals, requiring foreign companies to seek government approval for shipments and banning exports tied to military technologies. The US president called the policy “shocking” and warned that China was holding the world “captive” by limiting access to materials essential for electronics, jet engines, and defense systems.
The escalating trade dispute could have long-term implications for the crypto mining industry, as most mining hardware and semiconductors are manufactured in China. Supply chain disruptions could drive up mining costs and further pressure profitability in the sector.
Following the announcement, the BTC/USDT pair on Binance sank to its lowest level in three months, while on Coinbase, Bitcoin briefly recovered to $107,000 before stabilizing. Other major cryptocurrencies followed suit: Ethereum dropped 11 percent to $3,500 and Solana plunged 16.6 percent to below $140.
According to data from CoinGlass, more than $9.4 billion worth of crypto positions were liquidated in the past 24 hours, with $7.15 billion coming from long positions. Cointelegraph reported that analysts described the rout as a classic “market capitulation,” driven by investor panic that prices could fall even further.
Indodax Vice President Antony Kusuma said Bitcoin’s correction reflects how digital assets respond to geopolitical tensions and global risk sentiment. “Bitcoin is often seen as a hedge against monetary instability, but under extreme conditions, it behaves like a high-risk asset,” Antony said on Saturday. “A shaken global market, thin liquidity, and cascading liquidations on leveraged positions triggered the sharp decline, which was later followed by algorithmic buying.”
Despite short-term turmoil, Antony remains optimistic about Bitcoin’s medium-term outlook. “If U.S.-China tensions ease or new talks emerge, Bitcoin could consolidate between $112,000 and $118,000. But if trade issues persist, the price may fluctuate between $105,000 and $120,000 and any drop below $105,000 could present opportunities for long-term buyers,” he said.
The broader crypto market capitalization fell by 11.8 percent to $3.64 trillion, underscoring how sensitive digital assets remain to global economic policy shifts.
Investors are now watching whether the planned Trump-Xi meeting at the APEC Summit on Oct. 15 will proceed and if talks can cool rising trade tensions before the tariffs take effect.
Tags:
Keywords:
