President Donald Trump posted a statement on Sunday suggesting a potential easing of trade tensions between the US and China, while issuing a veiled warning to Chinese President Xi Jinping.
US stocks fell on Friday following the tariff threat. The announcement also triggered extreme volatility in crypto markets. The proposed tariffs on Chinese imports led to the largest single-day liquidation in crypto history, with over $19 billion in perpetual futures positions liquidated across exchanges.
Bitcoin Drops, Institutional Investors Remain Steady
The escalating trade tensions also affected global markets, including cryptocurrencies . Bitcoin fell more than 9% from $120,000 to $110,000, while some altcoins dropped over 50%.
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Institutional investors appeared largely unaffected. Spot Bitcoin ETFs recorded minor net outflows of $4.5 million, while BlackRock’s IBIT ETF saw inflows of $74.2 million and recently surpassed 800,000 BTC in assets under management.
Markets began recovering after Trump’s Sunday post on Truth Social. Bitcoin rose to $113,000, reflecting renewed market optimism.
“Friday’s reaction shows the crypto market is extremely sensitive to geopolitical developments, but the resilience of institutional investors highlights growing maturity in the market,” Simon Peters, Crypto Analyst, eToro, said.
“While retail traders were heavily impacted, ETFs like IBIT show that professional money is holding steady, which bodes well for recovery,” he explained.
Trump Warns Xi, Announces Tariff Increase
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” he wrote on Truth Social.
The statements came after Trump increased tariff and trade pressure on Beijing on Friday, announcing on Truth Social that the US would impose an additional 100% tariff on Chinese goods starting November 1, 2025.
BREAKING: Trump has just said: Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! pic.twitter.com/Uq922Esh55
— unusual_whales (@unusual_whales) October 12, 2025
China Export Controls Trigger Trump Response
The announcement followed China’s move to implement new export controls next month, which Trump described as “extraordinarily aggressive” and a “moral disgrace in dealing with other nations.” He added that the timeline of the 100% tariff could be accelerated depending on China’s response. Export controls targeting China's access to “critical software” were also scheduled to take effect the same day.
🚨 The $19 Billion #Crypto Meltdown Explained 🚨
— CCN (@CCNDotComNews) October 11, 2025
Trump’s 100% China tariff threat just triggered the largest #liquidation event in crypto history.
Here’s what happened — and why it matters 🧵👇 pic.twitter.com/IqHbStvc0L
Trade Dispute Escalates, Farmers Face Impact
Earlier Friday, Trump had threatened a “massive increase” in duties on Chinese goods and suggested he might cancel a planned meeting with Xi Jinping. He cited recent Chinese curbs on rare earth mineral exports, new port fees on US ships, and an antitrust investigation into Qualcomm as evidence of a “very hostile” stance. Beijing also halted purchases of US soybeans, affecting US farmers.
Current US tariffs on China, which in some cases approach 145%, are on hold until November 10 as negotiations on a larger trade deal continue. Chinese tariffs on US goods had risen to 125% before the pause.
