Quick overview

Live BTC/USD Chart

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Bitcoin (BTC) experienced a dramatic flash crash, plummeting from approximately $122,000 to a low of $102,000 in under an hour.  It had recovered to $113,000. This decline represented roughly a 17% drop, eliminating over $9 billion in leveraged positions within the cryptocurrency market. Furthermore, many altcoins faced even steeper intraday falls of 50–90%, with Ethereum (ETH) falling more than 20% to $3,440.

The incident has sparked widespread panic across trading floors and social media, illustrating how leverage-fueled volatility can be magnified by macroeconomic factors.

In a related development, U.S. President Donald Trump announced a 100% increase in tariffs on “any critical software” imports from China. This decision was a response to China’s imposition of export restrictions on rare earth minerals, which are vital for technology-related manufacturing. The announcement led to a sharp decline in the prices of Bitcoin, Ethereum, and many other cryptocurrencies.

Donald Trump raised concerns about China’s rare earth mineral export policy in a post on Truth Social, referring to it as an “extraordinarily aggressive position.”

He stated, “It has just been learned that China has adopted an extraordinarily aggressive stance on trade, as they sent a very hostile letter to the world announcing their intention to impose large-scale export controls on virtually every product they manufacture, and some not even produced by them, starting November 1, 2025.” 

He emphasized that all countries are affected by this move, claiming it is a plan China devised years ago. Trump described it as a moral embarrassment to engage with other nations under such circumstances, noting that this approach is entirely unprecedented in international trade. Given China’s extreme stance, he declared, speaking exclusively on behalf of the United States, that starting November 1, 2025 (or sooner, depending on any further actions or changes by China), the U.S. will need to respond accordingly.