Crypto Market Sinks $125 Billion After Trump’s New China Tariff Threat – What’s Next?

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Well, well, well, look who’s back to throwing tantrums: President Trump! The global crypto market lost a whopping $125 billion within hours on Friday after he decided to crank up the tariff drama with China and cancel his chat with President Xi Jinping. Because nothing says “Let’s make America great again” like crashing the market. 🙄

Bitcoin and Ethereum took the biggest hits like the popular kids at a high school fight, leading the whole crypto market into a red sea. Who knew digital currencies could be so… sensitive? 🤑

Trump’s Trade War: A Recipe for Financial Mayhem 🍿

The crypto market capitalization plummeted from a somewhat respectable $4.27 trillion to a much sadder $4.10 trillion, according to CoinGecko. The damage was so bad, Wall Street freaked out too, with the S&P 500 losing $1.2 trillion in just 40 minutes. I mean, how much panic can you pack into one hour, right? 😬

What just happened?

At 10:57 AM ET, President Trump dropped the bomb, said “massive” tariff increases are coming, and canceled his meeting with China.

40 minutes later, the S&P 500 erased -$1.2 TRILLION in market cap. So… uh, is this a “buy the dip” moment? (Spoiler: probably not.)

(A thread)

– The Kobeissi Letter (@KobeissiLetter) October 10, 2025

Bitcoin fell 1.9% to a still-respectable $118,000, while Ethereum dropped 4.7% to $4,104. Altcoins? Oh, they were *really* feeling it, with Solana and XRP down over 2%. 💸

It wasn’t just a casual drop either-forced liquidations were flying everywhere like confetti at a New Year’s party. Over $824 million in leveraged positions were liquidated in the past 24 hours, and guess who got the biggest slice of that chaos pie? Bitcoin. No surprise there. 🥴

Long traders? Oof. They took a beating, losing more than $670 million. Not exactly the “get rich quick” fantasy, huh?

Analysts are having a field day, with some saying the shock announcement has reignited fears of a full-blown US-China trade war. It’s like the bad 2018 sequel no one asked for. 🙄 Add in the global rate cut drama and slow economic growth, and you’ve got a recipe for… well, *this* mess.

Crypto, being the emotional wreck that it is, followed along with traditional markets like a puppy chasing its tail. A full “risk-off” vibe from institutional traders, and the sell-off was real.

So, here we are: crypto’s growing sensitivity to geopolitical events is now on full display. Is it fun to watch? Not really, but it sure is dramatic! 🎭

Some very strange things are happening in China! They are becoming very hostile, and sending letters to countries throughout the world that they want to impose Export Controls on literally everything. Seriously, anything that has anything to do with production is on the chopping block. 🧐

– Trump Truth Social Posts On X (@TrumpTruthOnX) October 10, 2025

Will The Crypto Market Crash Further? 🧐

Brace yourselves: we’re not out of the woods yet. Expect immediate volatility through the weekend while traders try to digest this tariff shock. Liquidity? Oh, it’s thin like a hairless cat. 👀

Short-term, things are going to stay shaky for 48-72 hours. Bitcoin will probably hover between $115,000-$118,000, while altcoins will continue to sob quietly in the corner. 😿

If no new tariff measures come out, things might stabilize by next week. But hey, don’t hold your breath just yet. A formal Executive Order from Trump or some retaliation from China could extend this whole trainwreck for another week or two. Lovely, right? 🙄

Longer-term? Well, if trade tensions last into November, we might be looking at a bigger macro correction-kind of like those other times we’ve seen in 2019 or during the Fed-induced chaos of 2022. So, no biggie. 😬

Recovery depends on how quickly policymakers figure their stuff out and whether institutional traders stop running scared. 🏃‍♂️💨

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2025-10-10 22:04