BTC Holders Hit 346 Record entities now stash Bitcoin in treasuries, surging 19 in the last 30 days.
Xi’s Tariff Defiance China vows no fear in trade war, slapping 125% duties on U.S. goods amid Trump’s 100% threat.
Safe Haven or Speed Bump? History hints at BTC rebound; $100K floor looms as macro storm tests bull cycle.
The ghosts of trade wars past have risen again, slamming cryptocurrencies into a brutal reality check. On October 10, 2025, as U.S. President Donald Trump threatened a 100% tariff on all Chinese imports starting November 1—retaliating against Beijing’s rare earth export curbs—Chinese leader Xi Jinping fired back with a steely rebuke: “We do not want a tariff war, but we are not afraid of one.” The statement, echoing Xi’s April warning of “no winners” in such conflicts, has escalated tensions to fever pitch, with a planned Trump-Xi summit now on ice. For crypto traders riding high on Uptober dreams, the fallout was swift and savage: Bitcoin (BTC) plunged 10% to below $108,000, Ethereum (ETH) shed 15%, and the market hemorrhaged $19 billion in liquidations—the largest in history, per CoinGlass data.
This isn’t just geopolitical theater; it’s a direct gut punch to digital assets. With BTC’s market cap evaporating $200 billion in hours, the sell-off exposed crypto’s vulnerability to macro shocks. Trump, once a BTC skeptic turned evangelist with his meme coin and strategic reserve pledges, now wields tariffs like a wrecking ball, hitting supply chains for semiconductors and AI hardware that underpin blockchain tech. X (formerly Twitter) erupted with memes of “Trump’s tariff tantrum,” as whales cashed out longs and shorts raked in $200 million profits. Yet, beneath the panic, whispers of opportunity: if history rhymes, these dips birth legends.
Xi’s Stand: “Not Afraid” Echoes Through Global Markets
Xi’s words, delivered amid Beijing’s tit-for-tat 125% tariffs on U.S. goods, signal no retreat. State media CCTV amplified the message, framing it as a defense of economic sovereignty against “unilateral bullying.” Analysts at Capital Economics note China’s export boom—up 12.7% in October—could blunt the blow short-term, but prolonged war risks a 3% volume hit by mid-2026. For crypto, the ripple is immediate: Chinese investors, a powerhouse in BTC holdings (over 20% of global volume via offshore channels), triggered mass exits. On-chain trackers like CryptoQuant show $15 billion in BTC fleeing exchanges, mirroring 2018’s trade war exodus when prices tanked 70%.Crypto Carnage: $19B Liquidated in Historic Purge
The carnage was biblical. BTC’s flash crash liquidated $5.38 billion in positions, ETH $4.43 billion, and Solana (SOL) $2 billion—impacting 1.6 million traders, per Bloomberg. From a $125,000 peak earlier this week, BTC hit $102,000 lows before clawing back to $113,000 by Saturday. Altcoins fared worse: XRP and SOL cratered 20-30%, with Binance users raging over frozen accounts and failed stops. Forbes speculates insiders shorted big—doubling down 30 minutes pre-announcement for fat gains—while Reuters ties the rout to broader S&P 500’s 2.7% plunge, its worst since April. Leverage amplified the pain: 8x-12x bets, reminiscent of the $11B whale’s shorts, turned green candles red in seconds.
Bull Trap or Buy Signal? Crypto’s Trade War Playbook
Ironically, Trump’s pro-crypto pivot—ETFs inflows hit $1.3 billion last week—clashed with his tariff hawkishness, underscoring the asset’s dual role as risk-on rocket and inflation hedge. Past wars (2018-2019) saw BTC dip 50% initially but rebound 300% as fiat faltered. With 346 entities now hoarding BTC treasuries (up 19 in 30 days), supply squeezes could propel a V-shaped recovery to $130,000 if talks thaw. Bears, however, eye $100,000 as cycle-killer support. X pundits like @CryptoWhale warn of “deleveraging dominoes,” while bulls bet on Xi’s restraint. As Uptober sours, one truth endures: in tariff tempests, BTC isn’t just surviving—it’s the storm’s unintended phoenix. Traders, tighten those stops; the dragon and eagle aren’t done sparring.
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Nikolai Carter
