Trump’s announcement of 100% tariffs on Chinese imports triggered sharp declines across stock and crypto markets, highlighting rising geopolitical risks.
100% Tariffs Spark New Trade Panic
On November 1, a 100% tariff on Chinese imports announced by Donald Trump is set to take effect. The move is a response to China’s restrictions on exporting rare earth materials — key components for high-tech manufacturing. This escalation deepens tensions between the world’s two largest economies and paves the way for a renewed trade war.
Stock and Crypto Markets React Sharply
The news prompted an immediate 2.7% drop in the S&P 500 index, reflecting growing instability in global markets. Bitcoin, already under pressure near $117,000, plunged below $110,000 — a 12% decline in just 24 hours.
Crypto investor Ram Ahluwalia called the day “brutal,” linking the sudden crash to Trump’s tariff decision and technical market exhaustion. Prominent trader Pentoshi ranked this sell-off among the top 3 largest in crypto history, citing the “emotional toll” on traders.
Crypto Stocks Plunge Amid Uncertainty
Companies heavily exposed to cryptocurrencies suffered major losses:
- Coinbase (COIN) fell 7.75%, closing at $357.01 after hitting an intraday low of $351.63.
- Bullish (BLSH) dropped 9.42%, down to $60.37.
- Metaplanet (MTPLF), a firm holding bitcoin in its treasury, declined 2.25% to $3.48.
The steepest drop came from MARA Holdings — a bitcoin mining firm — which lost 7.67% to $18.65, followed by an additional 1.72% drop in after-hours trading.
MicroStrategy Faces Growing Pressure
Bitcoin treasury giant MicroStrategy (MSTR) fell 4.84% to $304.79. Analysts warn that the short-term drop reflects a deeper concern: weakening fundamentals.
The company’s multiple to net asset value (mNAV) fell below 1.18 — the lowest in the past 19 months. According to Jeffrey Kendrick of Standard Chartered, a value below 1.0 signals balance sheet risks and potential for consolidation.
Debt Pressure Mounts for Bitcoin-Exposed Firms
MicroStrategy and similar firms use PIPE financing (Private Investment in Public Equity) to acquire bitcoin. According to CryptoQuant, such stocks often trade near their discounted PIPE levels, leading to potential losses of up to 55% for early investors.
Currently, MicroStrategy holds approximately $78 billion in bitcoin, while its market cap sits at $94 billion — a $16 billion premium based solely on investor confidence in Michael Saylor’s strategy. However, with annual revenue below $350 million, analysts suggest this optimism may soon be severely tested.
Conclusion
Trump’s tariffs unleashed a chain reaction of fear, crashes, and liquidations throughout the crypto sector. The pressure on bitcoin-exposed companies, stock declines, and shifting market sentiment underscore just how sensitive crypto markets are to geopolitical shocks. Investors should exercise extreme caution in the coming weeks as uncertainty continues to grow.
Frequently Asked Questions
Find answers to the most common questions below.
Donald Trump’s announcement of 100% tariffs on Chinese imports sparked widespread panic, affecting both traditional and crypto markets.
Crypto-exposed firms like Coinbase, Bullish, Metaplanet, MARA Holdings, and MicroStrategy saw significant stock declines.
Recovery depends on geopolitical developments and market sentiment. For now, analysts advise caution due to heightened volatility and uncertainty.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
