Trump Tariff Threat on China Causes Bitcoin to Drop Below $119K
Bitcoin's rally to an all-time high was quickly reversed, with prices plunging due to heightened trade tensions between the U.S. and China.
U.S. President Donald Trump announced a "massive increase" in tariffs on Chinese goods after China imposed export controls on rare earth metals.
Following the announcement, Bitcoin (BTC) fell below $119,000 from $122,000.
Other cryptocurrencies like Ether (ETH), Solana (SOL), and XRP also experienced declines.
Stocks tied to the crypto sector reacted negatively: Circle (CRCL) dropped over 6%, Robinhood (HOOD) and Coinbase (COIN) both declined by 5%, and MicroStrategy (MSTR) decreased by about 3%.
Traditional markets were affected as well; WTI crude oil dipped nearly 4% below $60, while the S&P 500 and Nasdaq fell by 1.6% and 1.3%, respectively.
Gold increased by over 1% to more than $4,000 per ounce, indicating its status as a preferred risk-off asset for investors.
Bitcoin is currently priced at $118,800, down about 2% in the past 24 hours and approximately 6% since reaching a new peak above $126,000 four days ago.
