Trump tariff move hits crypto markets, triggers large liquidations

U.S. President Donald Trump’s announcement on October 10 that he would impose a 100 percent tariff on Chinese goods and tighten export controls on software set off a sharp selloff across cryptocurrency markets, sending bitcoin and other major tokens tumbling and triggering billions of dollars in forced liquidations in derivatives markets.

In a post on his social platform, the president said the measures were in response to Chinese export restrictions on rare earth minerals and other goods, and he warned they could take effect by November 1. He also said he remained open to meeting with Chinese leader Xi Jinping and that the tariffs could be lifted if Beijing reversed course. The statement came amid already elevated trade tensions between the two countries.

Markets reacted almost immediately. Bitcoin, which had reached an all time high earlier in the week above $125,000, plunged in the wake of the announcement, trading near $113,000 by Friday evening in New York according to market data. Ether fell roughly 7 percent from the session high to below $4,100, its weakest level since late September, and other large-cap tokens recorded steep declines.

Derivatives markets saw particularly...