NextFin news, On Friday, October 10, 2025, Bitcoin's price fell sharply below $118,000 after former U.S. President Donald Trump issued a warning to China about a potential massive increase in tariffs on Chinese goods entering the United States. This development occurred amid escalating trade tensions between the two countries.
Trump's warning was prompted by China's Ministry of Commerce quietly expanding export controls on rare earth minerals on Thursday, October 9, 2025. These minerals are critical components used in various high-tech products, including electric vehicles, smartphones, and medical devices. China, which produces approximately 90% of the world's rare earth minerals, extended government permission requirements to five additional minerals, tightening its control over exports.
Trump publicly stated on his social media platform that the U.S. administration was considering a significant tariff hike in response to China's move. He wrote, "They want to impose Export Controls on each and every element of production having to do with Rare Earths. One of the Policies that we are calculating at this moment is a massive increase of Tariffs on Chinese products coming into the United States of America." He added that while the measure might be painful, it would ultimately benefit the U.S.
The timing of China's export control expansion is seen as a strategic maneuver ahead of the Asia-Pacific Economic Cooperation (APEC) summit scheduled for late October in South Korea, where President Xi Jinping and Donald Trump are expected to meet. The move is widely interpreted as an attempt by China to gain leverage in trade negotiations.
Following Trump's tariff threat, Bitcoin experienced a 2.53% decline, dropping to approximately $117,655.04 according to CoinMarketCap data. The cryptocurrency also saw increased volatility, with a seven-day decline of 3.61%. Trading volume rose by 6.48% to $77.09 billion, while market capitalization decreased by 2% to $2.35 trillion. Bitcoin's market dominance slightly increased to 59.46%.
The broader financial markets also reacted negatively, with stocks sliding amid concerns over the potential escalation of trade conflicts between the U.S. and China. The threat of increased tariffs could have significant economic implications, affecting supply chains and global trade dynamics.
Bitcoin futures open interest declined by 2.76% to $87.02 billion, and liquidations surged to $180.98 million, with long positions suffering the majority of losses. This sell-off reflects investor anxiety triggered by the geopolitical developments.
In summary, on Friday, October 10, 2025, former President Donald Trump's announcement of a possible massive tariff increase on Chinese imports, in response to China's expanded export controls on rare earth minerals, led to a notable drop in Bitcoin's price and increased market volatility. The situation underscores the ongoing trade tensions between the U.S. and China ahead of the upcoming APEC summit.
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