Bitcoin Plunges Below $119K as Trump’s China Remarks Roil Crypto Markets
Digital gold gets political reality check
MARKETS REEL
Bitcoin slashed through the $119,000 support level as former President Trump's latest China commentary sent shockwaves through cryptocurrency portfolios. The flagship digital asset tumbled nearly 8% in Asian trading hours, wiping out gains from the previous week's rally.POLITICAL PRESSURE COOKER
Traders scrambled to adjust positions after Trump's unexpected trade policy statements raised concerns about potential regulatory headwinds. The sell-off accelerated as automated trading systems triggered stop-loss orders below key technical levels.INSTITUTIONAL WHIPLASH
Hedge funds and crypto ETFs recorded heavy outflows during the volatility spike. Market makers widened spreads dramatically, creating liquidity gaps that exacerbated the downward momentum. Trading volumes surged to 150% of their 30-day average as panic selling gripped retail investors.Because nothing says 'decentralized future' like sweating over every politician's morning tweet - welcome to mature finance, crypto-style.
What did Trump say?
On Friday, TRUMP took to his Truth Social account to comment on what he termed China’s increasingly hostile stance on rare-earth metals.
According to Trump, Beijing has dispatched letters to various countries threatening further export controls on rare earths. Trump threatened to cancel an anticipated meeting with China’s Xi Jinping.
“We have been contacted by other Countries who are extremely angry at this great Trade hostility, which came out of nowhere. Our relationship with China over the past six months has been a very good one, thereby making this MOVE on Trade an even more surprising one. I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right!” Trump posted.
He noted that China isn’t the only one with monopoly positions, as the U.S. does too, and said its position is “much stronger and far-reaching.” Trump also mentioned an upcoming meeting with Xi.
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so.”
Bitcoin retests $118,500 level
As the Dow Jones tanked by over 500 points, Bitcoin (BTC) fell more than 2% to near $118,560 across major exchanges.
The benchmark cryptocurrency traded just under the $119,000 mark at the time of writing. However, with Trump’s latest salvo against China triggering jitters around a potential new trade war between the United States and China, it is likely that bears could eye further downside.
Bitcoin’s daily trading volume was up 13% to over $74 billion.
