Crypto Crash: $150B Wiped Out After China Strikes Back at the US!

The global crypto market has entered another storm. Within a single trading day, over $150 billion in market value vanished, triggered by a sharp escalation in US–China trade tensions.

President Donald Trump’s decision to impose 100% tariffs on Chinese tech exports and tighten software export restrictions rattled global markets. As investor confidence collapsed, Bitcoin dropped 3.75% to $111,500, Ethereum fell 7.5% below $4,000, and smaller altcoins suffered even steeper declines.

With total crypto market capitalization slipping below $4 trillion, traders were reminded that in 2025, geopolitics moves crypto faster than innovation itself.

What Triggered the $150 Billion Crypto Market Crash?

The crash stemmed from renewed trade hostilities between the world’s two largest economies the United States and China.

President Trump’s move to impose 100% tariffs on select Chinese tech goods, followed by tighter export rules on software and AI-related tools, shocked investors across global markets. Beijing’s swift retaliation with sanctions on US imports escalated the standoff.

This series of actions created a chain reaction across global markets risk assets were dumped, safe havens surged, and crypto took the hardest hit.

In short, the key triggers included:

• New 100% tariffs on Chinese tech exports.

• Export controls on critical US software and chip technology.

• Chinese counter-sanctions targeting US tech firms.

• Rapid risk-off sentiment from global investors.

• Forced liquidations on leveraged crypto positions.

The outcome was a synchronized wave of selling pressure that wiped out billions in a matter of hours.

Read Also: Trump Warns the US Economy Could Collapse Without Tariff Revenue

How the China–US Trade War Shook Investor Confidence

Trade wars don’t just affect factories or freight they ripple through the entire digital economy.

When restrictions hit areas like semiconductors, cloud computing, and data infrastructure, the crypto sector feels the tremor. Blockchain technologies rely on global collaboration, liquidity, and technological freedom all of which weaken when geopolitical barriers rise.

Investors quickly shifted to defensive positions. They reduced exposure to high-volatility assets and prioritized stability over yield. In doing so, cryptocurrencies once viewed as the frontier of financial innovation became symbols of risk.

The market’s response was immediate: capital outflows intensified, and sentiment among institutional traders turned decisively bearish.

Read Also: Bitcoin ETF Inflows Oct 2025: Billions Drive Market Price Surge

Crypto Market Performance Overview

Bitcoin and Ethereum Drop Under Pressure

Bitcoin and Ethereum led the downturn, each revealing how sentiment-driven crypto truly is.

• Bitcoin (BTC): Fell about 3.75%, hovering near $111,500.

• Ethereum (ETH): Plunged 7.5%, slipping under $4,000.

• RSI dipped below 40, signaling bearish momentum.

• MACD confirmed declining momentum as sell orders spiked.

The liquidation cascade, particularly from overleveraged futures traders, amplified downward momentum and accelerated losses across major exchanges.

Altcoins Suffer Even Heavier Losses

Smaller-cap tokens absorbed disproportionate damage. Solana (SOL), Cardano (ADA), and BNB lost between 8% and 12%, while emerging altcoins saw losses exceeding 20%.

The selloff erased several weeks of market growth, pushing total market capitalization to $3.97 trillion a sharp drop from over $4.1 trillion the previous week.

Why Geopolitical Risks Now Dictate Crypto Price Movements

Crypto’s evolution from niche innovation to global financial asset has linked it to macroeconomic turbulence. When global tensions rise, digital assets no longer behave as isolated entities; they mirror broader risk trends.

Three major shifts define this correlation:

1. Institutional Participation: Hedge funds and ETFs now trade crypto alongside equities, syncing volatility across asset classes.

2. Automated Risk Systems: Algorithmic trading bots sell crypto when traditional market volatility rises.

3. Investor Psychology: Fear-driven liquidity flows now dictate price direction faster than on-chain fundamentals.

As one Reuters analyst aptly noted, “Crypto has become a barometer of global risk tolerance not a refuge from it.”

Read Also: Bitcoin Recovery Post-Crash: Low-Price Buying Opportunities

Can the Crypto Market Recover? Expert Sentiment and Next Steps

Despite the chaos, not all signals point downward. Analysts see a potential for rebound once liquidation pressures fade and diplomatic tone softens.

Bullish recovery conditions could include:

• A moderation in trade rhetoric between Washington and Beijing.

• A dovish stance from the Federal Reserve, improving liquidity.

• Bitcoin found support near $108,000–$110,000, with Ethereum stabilizing around $3,800.

However, traders should remain cautious. The market remains fragile, and another policy shock could trigger renewed volatility. For now, the strategy is survival waiting for clarity before chasing upside.

How to Navigate the Market: Trade Smartly on Bitrue

During turbulent cycles like this, discipline and precision define success. Bitrue provides the professional tools needed to make data-driven decisions amid chaos.

Why Bitrue stands out during volatility:

• Bitrue Alpha: Access early-stage projects before they hit mainstream exchanges.

• Advanced Charting Tools: Track RSI, MACD, and Bollinger Bands with precision.

• Risk Management Features: Set stop-loss or trailing orders to limit exposure.

• Market Insights: Daily updates on crypto sentiment and major price movements.

Whether trading dips or building long-term positions, Bitrue empowers users to trade strategically not emotionally.

Start trading smarter today at Bitrue.com and turn market volatility into opportunity.

Read Also: Bitcoin 114K Breakout: Post-Dip Strategies for Bitrue Users

Conclusion

The $150 billion crypto market crash of October 2025 reveals the undeniable influence of geopolitical conflict on digital finance. The China–US trade war didn’t just disrupt trade routes; it shook the foundation of investor psychology, dragging down Bitcoin, Ethereum, and nearly every altcoin.

But every crash carries a cycle: fear gives way to resilience, panic births innovation. As traders reassess positions and strategies, platforms like Bitrue serve as the bridge between volatility and opportunity, helping users trade intelligently through uncertainty.

The market has fallen, but its story is far from over.

FAQ

Why did the crypto market crash today?

Renewed US–China trade tensions and new US tariffs sparked a selloff across global markets, including cryptocurrencies.

How much value did the crypto market lose?

Over $150 billion in market value disappeared within 24 hours, dropping total capitalization below $4 trillion.

What caused the $150B crypto wipeout?

Tariffs, trade retaliation, and investor panic led to mass liquidations and market-wide losses.

How does the China–US trade war affect crypto?

Trade conflicts reduce investor confidence and disrupt tech sectors closely tied to blockchain innovation, causing crypto prices to fall.

Will the crypto market recover soon?

Analysts expect partial stabilization once political tensions ease and liquidity returns, though volatility remains likely.

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