(MENAFN- Crypto Breaking) The recent escalation in US-China trade tensions has stirred significant volatility across global financial markets, including the cryptocurrency sector. President Donald Trump 's announcement of a 100% tariff on Chinese goods has not only disrupted traditional markets but also sent shockwaves through digital asset prices. With Bitcoin dipping below $110,000 and major altcoins experiencing sharp declines, investors are closely watching how geopolitical conflicts influence crypto regulation and market stability amid ongoing international disputes.

• President Trump announced a 100% tariff on Chinese exports, citing Beijing's plans to impose extensive export controls on critical materials.
• The tariff announcement caused Bitcoin to drop below $110,000, with Ethereum , Solana , and other major cryptocurrencies also experiencing steep declines.
• China's export restrictions threaten the global supply chain for key developments in AI, high-performance computing, and crypto mining infrastructure.
• Crypto market cap drops by over 11%, reflecting broader market uncertainty due to geopolitical tensions and trade friction.
• The move underscores growing efforts in the US to reduce dependence on Chinese manufacturing and technology.

US President Donald Trump declared a 100% tariff on Chinese imports on Friday, triggering a sell-off in cryptocurrency markets. The decision was made in response to China's intentions to impose large-scale export controls on a wide range of products, including rare earth minerals vital for tech manufacturing. Trump took to Truth Social to criticize China's“extraordinarily aggressive” trade stance, warning of consequences for global commerce:

Source: Donald Trump

This tariff move echoes earlier measures announced in April, which already sent tremors through the crypto markets and heightened fears of a looming recession. The broader impact on digital assets reflects concerns about supply chain disruptions and the potential for increased geopolitical volatility to influence the evolving cryptocurrency landscape.

Tariff Pressure and Chip Access

Rare earth elements are indispensable for manufacturing semiconductors, which power everything from AI systems to crypto mining rigs. China's threat to limit exports of these materials intensifies worries about the global hardware supply chain, potentially hampering developments in high-performance computing and blockchain infrastructure.

Meanwhile, US efforts to restrict Chinese technology exports and foreign investments are part of a broader strategy to lessen reliance on overseas manufacturing networks. This ongoing geopolitical tug-of-war creates considerable uncertainty, which is reflected in the sharp declines observed across crypto markets today.

Following the tariff announcement, major cryptocurrencies slid significantly. Ethereum (ETH ) and Solana (SOL ) declined 12% and 14%, respectively, with Bitcoin dipping below the $110,000 threshold. The overall crypto market capitalization has fallen approximately 11.8%, currently standing at $3.64 trillion, underscoring the market's sensitivity to geopolitical developments.

This event highlights how global trade tensions continue to influence both traditional and digital asset markets-prompting discussions over the future of crypto regulation, supply chain resilience, and the geopolitical factors shaping the blockchain space.

Crypto Investing Risk Warning
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