Trump Tariff Announcement Triggers Crypto Flash Crash — BTC Drops Below $105K, XRP Loses 30% in Minutes

• Bitcoin nosedived to near $105,000 as Trump’s 100% China tariff announcement rattled global crypto markets.
• Analysts call the plunge a buying window, saying sentiment-driven dips often open rare entry points.

The global crypto market took a heavy blow on Friday after the U.S. President Donald Trump announced a 100% tariff on Chinese exports. Bitcoin plunged from around $122,000 to below $105,000 within minutes, while XRP tumbled more than 30% to under $2.

Trump’s move came in direct response to China’s restrictions on rare earth mineral exports, which are essential for technology and manufacturing sectors. He said the United States would impose export controls on “any and all critical software” in retaliation.

According to data from Coinglass, the market saw $19.31 billion worth of crypto positions liquidated in just 24 hours. Out of that figure, $16.82 billion were leveraged long positions, while $2.49 billion came from shorts.

Trump Responds to China’s Rare Earth Export Limits

In a Truth Social post, Trump stated, 

He added that the action affects all countries, claiming it was a strategy developed years earlier. “It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations,” Trump said, emphasizing that the United States would impose reciprocal measures.

Trump confirmed that the United States will impose a 100% tariff on Chinese imports starting November 1, 2025, or sooner if China takes further action. Trump stated, 

Analysts pointed out that this was not the first time a Trump tariff announcement had triggered a digital asset sell-off. Back in April, Bitcoin tumbled sharply after his first tariff comments sparked investor fears of an economic slowdown. 

On February 1, when Trump signed an executive order imposing import duties on goods from China, Canada, and Mexico, Bitcoin briefly dipped below $100,000.

Analysts Call Bitcoin Drop a Buying Chance

Several analysts, however, viewed the fall as a potential opportunity. Bitwise Invest strategist Juan Leon remarked on X that 

Bitwise chief investment officer Matt Hougan added that many traders hesitate to act when the market looks weak, even though corrections create rare opportunities. Hougan noted,

At the time of writing, Bitcoin has rebounded to $112,631, while XRP has climbed back to $2.42.