Crypto markets fall after Trump’s tariff threat: BTC falls below $117k

On October 10, President Donald Trump said he would impose a “massive increase” in tariffs on Chinese imports. The announcement came after Beijing introduced new restrictions on exports of rare-earth materials critical to technology and defense manufacturing.

Trump’s statement reminded the market of April 2 when his “Liberation Day” tariffs announcment spooked markets. On Friday, he renewed these concerns and hinted at a U.S.–China trade war and fueled volatility across global markets.

Bitcoin ( BTC ) immediately fell below $119,000 after reaching record highs earlier in the week and is now trading below $117,000. Ethereum ( ETH ) just broke below $4,000 while the $200 level for Solana ( SOL ) could soon be tested.

Crypto-related stocks such as Coinbase, Robinhood, and MicroStrategy declined 5-10% as digital assets and technology shares sold off simultaneously.

U.S. equity indexes dropped immediately following the comments. The S&P 500 closed lower by 2.71% and the Dow Jones Industrial Average lost nearly 900 points. The Nasdaq Composite fell the most with a 3.56% daily loss.

Gold was up more than 1% on the day, signalling that it is indeed the only flight to safety, not crypto.

Shutdown and regulatory delays

The sell-off occurred as the U.S. government shutdown entered its 10th day, leaving agencies such as the Securities and Exchange Commission operating with limited staff. The SEC confirmed on Oct. 10 that most normal review and approval processes, including pending cryptocurrency-related filings, remain delayed until funding resumes.

Friday’s session saw a broad risk-off shift following Trump’s tariff threat and ongoing fiscal gridlock in Washington. Gold prices rose more than 1% while oil slipped to a five-month low. The combination of trade tensions, political uncertainty, and thin regulatory activity contributed to the decline in both traditional and digital markets throughout the day.