Bitcoin Drops to $104K Amid U.S.-China Trade Tensions/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Bitcoin fell to $104,782 following Trump’s sharp escalation in the U.S.-China trade war. His threat of 100% tariffs and export controls spooked investors, wiping out $2 trillion in stock value. Crypto and global markets reacted with steep declines.
Bitcoin Plunge and Trump Tariffs Quick Looks
- Bitcoin fell 8.4% to $104,782 after Trump’s trade threat.
- Trump vows 100% tariffs on Chinese goods, tightens software export rules.
- Ethereum dropped 5.8% to $3,637 during Friday’s session.
- S&P 500 lost 2.7%, its worst day since April.
- Nasdaq fell 3.56%, tech stocks led the sell-off.
- Trump accused China of holding world “captive” over rare earths.
- U.S.-China trade talks now uncertain ahead of APEC summit.
- Nvidia, AMD, Apple, Tesla shares fell sharply on Friday.
- Trump’s post erased $2 trillion in stock market value.
- Investors fear Chinese retaliation and deeper economic fallout.
Bitcoin Drops to $104K Amid U.S.-China Trade Tensions
Deep Look
WASHINGTON – Bitcoin extended its losses Friday, plummeting to $104,782, as a sharp escalation in the U.S.-China trade conflict by President Donald Trump rattled global financial markets and triggered widespread investor panic.
The world’s most valuable cryptocurrency dropped by 8.4%, continuing a downward trend that mirrored a broad market sell-off following Trump’s declaration that his administration would impose 100% tariffs on Chinese exports. Additionally, Trump threatened new export controls on all critical software, a move seen as a direct blow to China’s tech sector and a major escalation in an already strained economic relationship.
The market response was swift and severe.
The S&P 500 fell by 2.7%, its worst daily decline since early April, wiping out approximately $2 trillion in market capitalization in just a few hours. The Nasdaq Composite dropped 3.56%, also its worst performance in months, while the Dow Jones Industrial Average shed 879 points, or nearly 1.9%.
Trump’s aggressive stance came via a post on his Truth Social platform, where he accused China of becoming increasingly hostile and monopolizing rare earth minerals, which are essential for manufacturing technologies such as semiconductors, electric vehicles, and advanced defense systems. Trump specifically called out China for “holding the world captive” and announced plans to double current tariffs, which already average around 40%.
The president’s remarks arrived just as markets were approaching new highs. Prior to the post, the S&P 500 was flirting with another all-time peak. However, the mere suggestion of steeper tariffs sent financial markets spiraling.
Tech stocks, which rely heavily on global supply chains and exports to China, led the decline. Nvidia dropped nearly 5%, AMD plummeted 8%, Apple lost 3%, and Tesla fell 5%. In total, 424 of the S&P 500’s members closed the day in the red.
The crypto market also saw substantial losses. Ethereum, the second-largest cryptocurrency, slid 5.8% to $3,637. Other altcoins, including meme tokens like TRUMP coin, fell sharply, with some down more than 20% over 24 hours.
In a statement after the market closed, Trump doubled down on his rhetoric, saying the 100% tariffs would take effect at the start of next month, just as he was scheduled to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit. The aggressive posture now casts serious doubt on whether the summit meeting will occur at all.
Trump’s move came in response to China’s latest move to strengthen its grip on rare earth exports. Just a day earlier, Beijing had imposed licensing requirements for nearly all rare earth exports, particularly targeting companies that might use the materials for military applications.
Rare earth elements, of which China controls roughly 70% of global supply, are critical to multiple sectors including artificial intelligence, defense, automotive, and green energy. The Chinese government’s new controls would require companies to justify their use and could block exports for military-related projects altogether.
While some investors view Trump’s announcement as another negotiating tactic designed to gain leverage, the sudden and sharp market reaction indicates that many believe the risk of a full-blown trade war has now returned.
Despite the massive losses, a few stocks managed to stay positive. Walmart and tobacco-related stocks eked out modest gains due to their traditionally defensive status in turbulent markets.
The broader concern is that this abrupt shift could break broader financial mechanisms. Analysts pointed to contagion risks stemming from the bankruptcy of First Brands, a major private auto parts supplier. That event is reportedly impacting institutions such as Jefferies Financial Group, which saw a 4% drop Friday and an additional 6% decline in after-hours trading.
With the Columbus Day holiday closing bond markets on Monday, and stock futures set to open Sunday night, all eyes are now on how investors will respond to the weekend’s developments.
Market analysts remain split: some expect more turbulence next week, while others, referencing April’s tariff panic that later reversed, see this dip as a potential buying opportunity. Jay Woods, Chief Market Strategist at Freedom Capital Markets, commented:
“This could be another short-term overreaction to a long-term negotiating play. Smart money may take advantage of the pullback.”
Despite Friday’s sharp sell-off, the S&P 500 remains up more than 11% for the year, largely driven by the unrelenting demand for AI-related stocks and the broader resilience of the U.S. economy. Whether Trump’s threats translate into real policy or yet another negotiation ploy remains to be seen — but investors aren’t waiting around to find out.
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