Cryptos See Red as New Trump Tariffs on China Trigger Liquidations

October began with strong momentum for Bitcoin and the broader crypto market, but the excitement surrounding what traders call “Uptober” came to a sudden stop on Friday following U.S. President Donald Trump’s latest comments about new trade tariffs on China. His announcement rattled investors, leading to sharp sell-offs across digital assets and traditional markets alike.

According to CoinGlass data, over $1 billion worth of crypto was wiped out within the following 24 hours as the market tumbled in step with U.S. stocks. The sudden decline followed Trump’s morning remarks announcing plans for heavy new tariffs on Chinese imports, which triggered widespread risk-off sentiment among traders.

Bitcoin, which was trading above $122,000 early Friday, dropped to roughly $116,200, marking a daily loss of around 4%. Ethereum has seen an even steeper fall, down nearly 8% to $3,975. Solana also took a hit, sliding more than 7% to around $205.

These losses have nearly erased all of Bitcoin’s progress for the month, pulling its price back to levels last seen at the beginning of October. Data from CoinGecko shows that Solana and Ethereum have also fallen to their lowest prices of the month.

Historically, October has often been one of the strongest months for Bitcoin. In the first week of October, Bitcoin surged more than 10%, touching a new all-time high above $126,000. However, those gains have now largely vanished.

The turning point came when President Trump canceled a scheduled meeting with China’s president Xi Jinping and announced that he would impose what he called a “massive increase” in tariffs on Chinese goods entering the U.S. He acknowledged that the move could cause “potentially painful” short-term consequences for American consumers and businesses.

The announcement also rattled Wall Street. The S&P 500 dropped nearly 2.7%, while the Nasdaq closed about 3.5% lower. The Dow Jones Industrial Average also declined by around 1.9% for the day.

Interestingly, one of the biggest casualties of the announcement was Trump’s own digital asset. WLFI, the native crypto of World Liberty Financial, a crypto project linked to the Trump family, plunged more than 17% after the news broke, dropping to just over $0.14 per token before recovering slightly to $0.16 later in the day.

As markets digest the escalating trade tensions, both traditional and digital assets remain under pressure, leaving investors uncertain about whether the “Uptober” momentum can regain its footing this year. Companies like Bit Mining Ltd. (NYSE: BTCM) will be hoping that the market regains its momentum.

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