Trump imposes 100% tariffs on Chinese tech exports | Global cryptocurrency prices plummet $19 billion: Causes and impacts analyzed

1. Tariff "nuclear bomb" triggers market panic

On October 10, 2025, US President Donald Trump announced a 100% tariff on all exports of critical software and high-tech products from China, marking a new phase in Sino-US trade tensions. Global capital markets reacted swiftly to the announcement, with the cryptocurrency market reacting most dramatically. In just 24 hours, the total global market capitalization of crypto assets evaporated by approximately $19 billion , marking one of the largest single-day declines of the year.

2. Bitcoin leads the decline, and the crypto market collapses in a chain reaction

Bitcoin led the sell-off, plummeting 8.4% in a matter of hours, briefly falling below the crucial psychological level of $61,000. Major tokens like Ethereum, Solana, and XRP also plummeted, with average declines ranging from 6% to 9%. Market liquidity plummeted, and the fear index soared to a new high for the year. Some small-cap tokens even saw declines exceeding 15%.

Analysts point out that this round of decline is not due to deteriorating market fundamentals, but rather to the spillover of sentiment surrounding geopolitical risks. "The crypto market is becoming increasingly sensitive to macro risks, especially against the backdrop of a reshaping of the global trade landscape," said the chief strategist at GMI Partners, a New York-based digital asset investment firm.

3. Institutional funds withdraw, and ETF inflows slow sharply

It’s worth noting that the attitudes of institutional investors have also changed dramatically. According to CoinShares data, Bitcoin-related ETFs saw inflows of approximately $2.2 billion last week. However, within two days of the tariff announcement, this figure plummeted by over 70%, with nearly $500 million in outflows.

The withdrawal of funds by institutions reflects market concerns about the potential economic impact of the restructuring of global supply chains. Some hedge funds and family offices have chosen to temporarily exit the market, waiting for market volatility to subside before re-establishing positions.

4. Geopolitics becomes the new “pricing factor” in the crypto market

In the past, cryptocurrencies were often viewed as safe-haven assets, but this attribute is now being challenged. As global trade frictions, geopolitical confrontations, and macroeconomic uncertainty intensify, the crypto market is increasingly acting as a barometer of global financial risks.

"The crypto market in 2025 can no longer be analyzed independently of the macro environment. Both central bank policies and tariff shocks will directly affect the valuation model of digital assets," said a recent report from the London School of Economics' Digital Finance Research Center.

5. Market Outlook: Short-term pressure, but long-term structural opportunities

Despite bearish market sentiment in the short term, industry insiders generally believe that this plunge does not signal the end of the crypto bull market. With the expansion of ETF products, the advancement of RWAs (real-world asset tokenization), and increased institutional participation, the fundamentals of crypto assets remain solid.

"This is more of a sentiment-driven short-term correction," said analysts at Swiss crypto bank SEBA. "If the trade war risks are gradually priced in by the market, Bitcoin and other major currencies may regain strength in the coming weeks."