Main Highlights
- U.S. President Donald Trump has stated that the nation is currently engaged in a trade war with China.
- The cryptocurrency market has shown minimal reaction to Trump’s recent remarks, following a significant crash last week.
- An expert from MIT’s Digital Currency Initiative commented that the recent crash, while substantial, demonstrated the market’s self-correcting capability.
U.S. President Donald Trump has reignited tensions by declaring, “We’re in a Trade War with China Now.”
Responding to a reporter’s inquiry about the tariff dispute with China, Donald Trump asserted, “Well, you’re in one now. We have a 100% tariff. If we did not have tariffs, we would be exposed as being nothing.”
💡 At the time of this report, the cryptocurrency market appears to be largely unaffected by the latest escalation.
According to CoinMarketCap data, Bitcoin was trading around $111,035.68, showing a marginal increase of 0.03% on the hourly chart. However, trading volume experienced a notable decline, dipping by approximately 22%. The market capitalization for Bitcoin stood at around $2.21 trillion.
📊 Other major cryptocurrencies, including Ethereum and Solana, are also experiencing a consolidation phase, a trend observed as the trade tensions with China persist. Ethereum was trading near $3,958.91, and Solana was at approximately $193.21.
Trump’s Shifting Stance on the China Trade War
In the span of less than a week, U.S. President Donald Trump has presented contradictory signals regarding his administration’s trade policies with China.
Last Friday, Trump issued a stern warning on Truth Social, indicating the potential for an additional 100% tariff on Chinese imports effective November 1, following China’s restrictions on rare earth mineral exports.
Based on the fact that China has taken this unprecedented position… the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” Trump stated.
A Chinese government official responded to these statements, emphasizing consistency in China’s approach: “On the matter of tariff wars and trade wars, China’s position remains consistent. If you wish to fight, we shall fight to the end; if you wish to negotiate, our door remains open.”
📌 However, Trump later appeared to soften his stance, dialing back the aggressive rhetoric on Sunday. He remarked, “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!!!”
⚡ This latest aggressive declaration has once again left the financial world uncertain.
Assessing Crypto Market Resilience Amidst Volatility
The cryptocurrency market endured a significant downturn in the wake of Donald Trump’s remarks last week. Approximately $19 billion in cryptocurrency value was erased due to extensive liquidations, driven by substantial sell-off pressure.
In one of the more significant liquidation events in the history of cryptocurrency, Bitcoin’s price sharply declined from around $122,000 to $102,000 within a few hours. This drop in Bitcoin triggered a correlated decline in other altcoins, including Ethereum, Solana, and BNB, which fell by over 10%, according to CoinMarketCap.
✅ Subsequently, the cryptocurrency market attempted to absorb the shock through heightened trading activity. Nevertheless, major cryptocurrencies like Bitcoin and Ethereum are still striving to recover their previous price levels.
💡 Neha Narula, director of the Digital Currency Initiative at the MIT Media Lab, offered a perspective that the recent crypto market crash was not a cause for concern, but rather a demonstration of the market functioning as intended.
There was a big crash, but it worked, Narula stated in an interview. We weren’t talking about bailing anyone out, we weren’t talking about having to revert things.” This suggests that the cryptocurrency market demonstrated an ability to quickly process and recover from the recent volatility.
My wife just asked me what I thought about all these constant crypto dips.
She asked if I think they’re doing this to scare people.
Yes.
— Dan Gambardello (@cryptorecruitr) October 15, 2025
Conversely, Dan Gambardello, a well-known figure in the cryptocurrency space, has voiced concerns regarding the persistent price drops in the crypto market. In response to his wife’s query about whether these fluctuations might be intentionally designed to deter investors, he acknowledged the potential for market manipulation.
Expert Summary
U.S. President Donald Trump’s reassertion of a trade war with China introduces renewed uncertainty into global markets. While the cryptocurrency market experienced a significant crash last week, recent price action suggests a muted immediate reaction to Trump’s latest statements, with Bitcoin and major altcoins showing stability after earlier volatility. Experts like MIT’s Neha Narula view such market corrections as a sign of a healthy, self-regulating system, though prominent figures like Dan Gambardello remain watchful for potential market manipulation.