The China-US trade war escalates! Trump unleashes a 100% tariff strike: US stocks experience a big dump, Bitcoin plunges sharply while ETF attracts investment in defiance of the trend.

U.S. President Trump announced after Friday's close that the U.S. will impose an additional 100% tariff on all Chinese imports and implement key U.S. software export controls starting November 1, marking a renewed escalation in the U.S.-China trade conflict. As a result of this news, the three major U.S. stock indexes collectively experienced a big dump, with the S&P 500 and Nasdaq indexes recording their largest single-day drop since April 10. Driven by risk aversion, Bitcoin's price briefly soared above $122,000, then fell to $102,000, but the Spot Bitcoin ETF still recorded a massive net inflow of $2.71 billion this week, showing that institutional funds view it as "digital gold".

Macroeconomic Fluctuation: Trump's Tariff Blow and Market Panic

Trump's heavyweight tariff announcement was released after the regular trading hours last Friday, but his forward-looking comments have put pressure on global markets. Earlier, he stated on Truth Social that he was considering a "large-scale increase in tariffs on Chinese products" and canceled a planned meeting with the Chinese president two weeks later.

· US stocks plunged: On Friday, the Dow Jones Industrial Average fell 878 points (1.9%), closing at 45,479.60 points; the S&P 500 index dropped 182.60 points (2.7%), closing at 6,552.51 points; the Nasdaq Composite Index plummeted 820.20 points (3.56%), closing at 22,204.43 points. All indices erased their weekly gains, recording the worst performance in months.

· Panic index surges: The CBOE Volatility Index (VIX), which measures market expectations of volatility, has risen to its highest closing level since June 19.

· Technology stocks hit hardest: The Philadelphia Semiconductor Index experienced a big dump of 6.3%. Chip stocks like Advanced Micro Devices fell 7.7% and Broadcom fell 5.9%. In after-hours trading, tech giants such as Nvidia, Tesla, Amazon, and Advanced Micro Devices saw their stock prices further decline by over 2%.

China's Countermeasures: Rare Earths, Port Fees, and Antitrust Investigations

In response to the increasingly aggressive trade policies of the United States, China has also taken clear countermeasures:

· Rare Earth Export Restrictions: China has announced new rare earth export restrictions. As China produces more than 90% of the world's processed rare earths and rare earth magnets, which are key materials for electric vehicles, aircraft engines, and military radar, this move is seen as a direct threat to the U.S. high-tech supply chain.

· Other countermeasures: China has simultaneously begun imposing special port fees on American vessels and has initiated an antitrust investigation into Qualcomm's acquisition of the Israeli company Autotalks. As a result, Qualcomm's stock price fell by 7.3%, while the stocks of Chinese companies listed in the U.S., such as Alibaba, JD.com, and Pinduoduo, experienced declines ranging from 5.3% to 8.5%.

Bitcoin "digital gold" narrative: ETF funds flowing against the trend

In the context of increasing uncertainty in the macro environment, the performance of Bitcoin is remarkable, highlighting its appeal as a safe-haven asset.

· Price Trend: Later on Friday, the price of Bitcoin soared to over 122,000 USD, before falling back to around 102,000 USD on mainstream CEX, with extreme volatility.

· Gold performance: The price of gold, a safe-haven asset, has risen to around 4,000 USD per troy ounce.

· ETF continues to be strong: Despite the market's severe fluctuations on Friday, the U.S. spot Bitcoin ETF has received a substantial net inflow of $2.71 billion during this week's "Uptober" rally, indicating strong institutional demand.

· Record asset scale: According to SoSoValue data, as of Friday, the total assets under management of Bitcoin ETF have risen to 158.96 billion USD, accounting for nearly 7% of Bitcoin's total market capitalization.

· Slight outflow on Friday: It is noteworthy that on Friday, after Trump announced tariffs, there was a slight net outflow of 4.5 million dollars in Bitcoin ETF. BlackRock's IBIT still leads with a daily inflow of 74.2 million dollars, but Fidelity's FBTC and Grayscale's GBTC recorded outflows of 10.18 million dollars and 19.21 million dollars, respectively.

· Expert Commentary: Vincent Liu, Chief Investment Officer of Kronos Research, commented that Trump's tariff threat is more like a "negotiation strategy rather than a policy shift" and is a "classic pressure game." He noted that "the market may retreat in the short term, but smart money understands this game: macro noise, belief remains unchanged."

Market Background: Government Shutdown and Surge in Crypto ETF Applications

The escalation of the trade war is not the only uncertainty for the market. The U.S. government has entered the 10th day of a shutdown, leading to a pause in the release of official economic data. Furthermore, preliminary October consumer confidence data from the University of Michigan shows that consumers are worried about high prices and employment prospects, with confidence nearing historical lows.

However, the crypto industry is entering an explosive period: "Uptober" has not only brought strong inflows of Bitcoin ETF funds but also triggered a wave of applications for crypto ETFs. In the past two months, the U.S. Securities and Exchange Commission (SEC) has received 31 applications for crypto ETFs, with 21 concentrated in the first eight days of October. Analyst James Seyffart pointed out that as of the end of August, there are still nearly 100 crypto-related products waiting for SEC decisions, indicating that the industry's "gates" may soon open.

Conclusion

The 100% tariff announced by the Trump administration has cast a new shadow over the already turbulent global economy. From mutual countermeasures between China and the U.S. to the sharp fall of tech stocks in the U.S. market, market risk aversion has reached a months-long high. In this context, Bitcoin's properties as "digital gold" for hedging macro uncertainties have been further validated, with strong institutional demand for Spot Bitcoin ETF supporting the bullish narrative of the entire crypto market. The market is experiencing a tug-of-war between macro noise and institutional conviction, and investors need to closely monitor the upcoming bank earnings reports next week to assess the resilience of the economic fundamentals.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions cautiously.