Crypto Market Collapses: Bitcoin Loses Thousands of Dollars per Minute
Bitcoin, the world’s largest cryptocurrency by market capitalization, experienced a sharp drop on Friday after U.S. President Donald Trump escalated the trade conflict with China.
Trump announced an increase in tariffs on Chinese exports to the U.S. to 100% and the introduction of export controls on “all critical software.” This decision is a response to China’s restrictions on the export of rare earth elements, which are essential for technological and industrial production.
Earlier on Friday, Bitcoin had weakened to around $117,000 following Trump’s morning comments, and soon fell below $110,000, marking a 12% drop in the last 24 hours. According to CoinGlass data, traders who bet on price increases suffered liquidations of more than $7 billion.
After the close of traditional markets, Trump announced via Truth Social that additional tariffs and export controls would take effect on November 1. At the moment of the announcement, Bitcoin lost an additional $3,000, and the market experienced extreme volatility reminiscent of the market crash in March 2020 triggered by the COVID-19 pandemic.
“The drop is on the level of COVID nuclear strikes,” commented well-known trader Bob Loukas.
Ram Ahluwalia, founder of the investment firm Lumida Wealth, said: “A brutal day. Trump’s news, combined with overbought market conditions, led to a sharp decline.”
