Bitcoin experienced a significant price drop today, falling to the $108,000 range, a stark contrast to its recent all-time high. This downturn was primarily triggered by an escalation in U.S.-China trade tensions, following President Donald Trump's announcement of plans to impose a 100% tariff on Chinese goods and enforce export controls on critical software, effective November 1, 2025. These measures were a direct response to China's new “aggressive” and “unprecedented” export controls on nearly all products containing even trace amounts of Chinese rare earth elements, which are vital for a wide array of high-tech applications, from jet engines and electric vehicles to laptops and phones. The policy expansion by China specifically targets the defense, semiconductor, and AI sectors, sparking concerns of a global supply chain shock.

President Trump conveyed his intentions on Truth Social, stating that China’s actions were “sinister and hostile” and that the U.S. would “financially counter” Beijing’s move. He also canceled a planned meeting with President Xi Jinping at the APEC summit in South Korea, originally scheduled for two weeks from the announcement, citing no reason to proceed given the circumstances. This dramatic escalation in the trade dispute rattled global markets, with the S&P 500 falling 2% and the Nasdaq down 2.7%. Crypto-related stocks, including Circle (CRCL), Robinhood (HOOD), Coinbase (COIN), and MicroStrategy (MSTR), also saw declines ranging from 3% to 12% throughout the day.

Bitcoin’s price trajectory in early October had been largely positive, kicking off the month with a surge that pushed it to fresh all-time highs above $126,000 in the first week. The price had then pulled back to the $121,000 range in the days leading up to today's news. However, in the wake of the trade announcements, Bitcoin price dumped from roughly $117,000 in early afternoon to below $108,000, registering a decline of roughly 2.3% in the past 24 hours and about 6% since its record high. At one point, Bitcoin was down approximately 10%, with many other cryptocurrencies experiencing even steeper drops of 20-40% before recovering slightly to the $113,000 range amid high volatility.

Despite the recent volatility, market analysts suggest that Bitcoin has entered what many describe as the “euphoria phase” of its current bull cycle. If historical patterns hold, this phase could potentially propel Bitcoin toward the $180,000–$200,000 zone before any significant shift in market sentiment. The leading cryptocurrency has climbed more than 30% since the start of the year, a rally fueled by sustained inflows into U.S.-listed Bitcoin exchange-traded funds (ETFs), renewed investor confidence in digital assets, and expectations that the Federal Reserve will move towards cutting interest rates.