Bitcoin price plunged below $110,000 after U.S. President Donald Trump’s announcement of 100% tariffs on China, as markets reacted to potential supply-chain disruptions in rare earths and semiconductors. The shock triggered double-digit losses across major tokens and pushed global crypto capitalization sharply lower.
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Immediate market reaction:
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Bitcoin (BTC) fell to under $110,000, while Ether (ETH) and Solana (SOL) recorded double-digit losses.
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Global crypto market cap moved down to $3.64 trillion, a roughly 11.8% 24-hour decline at time of reporting.
Meta description: Bitcoin price plunge: Trump’s 100% tariffs on China pushed BTC under $110,000, triggering double-digit crypto losses and sparking supply-chain concerns — read analysis.
Bitcoin plunged below $110,000 after Trump announced sweeping tariffs on China on Friday, reigniting fears of a broader trade and market sell-off.
US President Donald Trump announced a 100% tariff on China on Friday, sending the price of Bitcoin (BTC) reeling below $110,000 at this writing.
Trump said the tariffs were in response to China attempting to place export restrictions on rare earth minerals, which are crucial for creating computer chips. Trump posted on Truth Social that China planned effective export controls on November 1, 2025.
Source: Donald Trump
Trump’s initial tariff moves in April and the new 100% tariff announcement have repeatedly produced market volatility and investor risk-off behavior. This latest announcement amplified concerns about access to materials used in semiconductors and crypto-mining hardware.
What caused the Bitcoin price plunge below $110,000?
Bitcoin price plunge was caused by the 100% tariff announcement from the U.S. government on Chinese exports, which heightened fears of disrupted semiconductor and rare-earth supplies. Markets sold off on increased macroeconomic risk, driving BTC below $110,000 and prompting broad crypto declines in the same session.
How do tariffs on China affect crypto mining and chip access?
Tightened export controls and punitive tariffs threaten the supply of rare earth elements and advanced chips used in ASICs and GPUs. Reduced access can increase hardware costs, constrain mining capacity, and pressure network hash rates, affecting miner margins and investor sentiment.
Semiconductor shortages historically push equipment prices up and delay deployment of new mining rigs. Industry observers and official trade data show supply-chain sensitivity for both AI and crypto infrastructure.
Market impact and immediate data
Within hours of the tariff announcement, Ether (ETH) was down approximately 12% and Solana (SOL) fell about 14%. The global crypto market capitalization registered at $3.64 trillion, reflecting an 11.80% decrease over the previous 24 hours.
Equities and commodity markets also showed stress, with risk assets repricing to reflect heightened geopolitical friction. These moves are consistent with past episodes where trade shocks produced rapid liquidity withdrawal from higher-risk asset classes.
Frequently Asked Questions
Will tariff-induced hardware shortages make Bitcoin mining unprofitable?
Short-term hardware shortages can raise rig prices and squeezing margins for small miners, but established large-scale miners with diversified supply lines may weather the shock. Profitability will depend on BTC price, electricity costs, and the pace of hardware deliveries.
How long could tariffs affect crypto markets?
Impact duration depends on policy timelines, retaliatory measures, and supply-chain adaptations. If export controls take effect on November 1, 2025, immediate effects could last weeks to months; structural changes could persist longer as manufacturers reconfigure sourcing.
Key Takeaways
- Immediate sell-off: Markets reacted swiftly, pushing BTC under $110,000 and producing double-digit losses in ETH and SOL.
- Supply-chain risk: Tariff threats to rare earths and semiconductors raise concerns for mining hardware and AI compute infrastructure.
- Monitor indicators: Watch hash rates, exchange flows, and on-chain liquidity to assess ongoing market stress and recovery potential.
Conclusion
Trump’s announcement of 100% tariffs on China produced an immediate market shock that drove a Bitcoin price plunge below $110,000 and pressured broader crypto markets. Investors should track supply-chain developments, miner cost structures, and official trade timelines. COINOTAG will continue to monitor updates and provide factual reporting as the situation evolves.
Related: The 2025 US-China trade war
