Bitcoin prices fell to the $108,000 range today as the escalating US-China trade tensions and tariff negotiations shocked global markets.
President Donald Trump today told Truth Social that China has announced “aggressive” and “unprecedented” export controls on nearly all products, impacting all countries starting November 1, 2025. In response, President Trump said the United States would impose 100% tariffs on Chinese goods and implement export restrictions on critical software starting the same day.
Bitcoin’s price plummeted on the news, dropping from around $117,000 in the early afternoon to below $108,000. At the time of writing, the price of Bitcoin has been volatile, returning to the $113,000 range.
At times, the price of Bitcoin has fallen by around 10%, and many other cryptocurrencies have fallen by 20-40%.
Markets react to US-China trade relations
Global markets sold off early on the day after President Trump announced plans to significantly increase tariffs on Chinese goods. The move came in response to new restrictions on rare earth exports by China, which the US president accused of using China to “monopoly” the vital resource.
China’s tightened export controls now extend to foreign products containing or processed using Chinese rare earths, signaling a significant escalation of trade disputes.
Policy expansion targeting the defense, semiconductor and AI sectors has raised concerns about global supply chain shocks.
Risk assets generally fell today, with the S&P 500 down 2% and the Nasdaq down 2.7%. President Trump also canceled his scheduled APEC meeting with Xi Jinping and vowed to “counter economically” China’s moves.
President Trump has previously described China’s actions as “evil and hostile” and argued that the United States has greater influence but has so far refrained from using it.
Crypto stocks like Circle (CRCL), Robinhood (HOOD), Coinbase (COIN), and MicroStrategy (MSTR) fell between 3% and 12% throughout the day.
Bitcoin price reaction
Bitcoin started off with a crash in October, hitting a new all-time high of over $126,000 in the first week of the month, but has returned to the $121,000 level in recent days.
Market analysts say the rally reflects what many are describing as the “euphoria phase” of the ongoing bull cycle. This phase is historically characterized by rapid price acceleration and increased retail enthusiasm.
If past cycles are any guide, the current momentum could propel Bitcoin towards the $180,000-$200,000 range before sentiment cools.
Major cryptocurrencies have risen more than 30% since the beginning of the year, helped by steady inflows into U.S.-listed Bitcoin ETFs and a return to investor confidence across the digital asset market.
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