Bitcoin Price Dumps To $108,000, Trump Puts Tariffs On China

Markets react to U.S-China trade relations

Global markets sold off earlier today following President Trump’s announcement of plans to dramatically increase tariffs on Chinese goods. The move came in response to Beijing’s new restrictions on rare-earth exports, which the U.S. president accused China of using to “monopolize” critical resources.

China’s tightened export controls now extend to foreign-made products that contain or were processed using Chinese rare-earths, signaling a major escalation in the trade dispute. 

The policy expansion — targeting defense, semiconductor, and AI sectors — sparked concerns of a global supply chain shock.

Risk assets broadly tumbled today, with the S&P 500 falling 2% and the Nasdaq down 2.7%. Trump also canceled a planned meeting with Xi Jinping at APEC, vowing to “financially counter” China’s move. 

Trump earlier described Beijing’s actions as “sinister and hostile,” claiming the U.S. holds even greater leverage but has refrained from using it — until now.

Crypto-related stocks, like Circle (CRCL), Robinhood (HOOD), Coinbase (COIN), and MicroStrategy (MSTR), declined 3%-12% throughout the day.

Bitcoin price reaction

Bitcoin started October on a tear, hitting fresh all-time highs above $126,000 during the first week of the month before easing back into the $121,000 range in recent days.

Market analysts say the rally reflects what many describe as the “euphoria phase” of the ongoing bull cycle — a stage historically marked by rapid price acceleration and growing retail enthusiasm.

If past cycles are any guide, the current momentum could propel Bitcoin toward the $180,000–$200,000 range before sentiment cools.

The leading cryptocurrency has climbed more than 30% since the start of the year, fueled by steady inflows into U.S.-listed Bitcoin ETFs and a resurgence of investor confidence across the digital asset market.