Bitcoin’s price stumbled after U.S. President Donald Trump warned of a “massive” tariff hike on Chinese goods, rattling global markets and fueling a sharp sell-off in crypto. The leading digital asset fell below the key $120,000 level as investors reacted to rising geopolitical and trade tensions.
Bitcoin Drops as Tariff Fears Trigger Sell-Off
Bitcoin fell sharply in early Monday trading after Trump’s comments reignited fears of a renewed trade war between the U.S. and China. Data from TradingView showed BTC slipping from above $121,000 to under $120,000 within hours of the announcement. The sell-off reflected broader market unease as investors moved away from riskier assets.
In a Truth Social post, Trump described China as “hostile” and hinted at several possible countermeasures, including steep new tariffs on imports. His words brought back the events of the 2018 trade war that struck international markets and damaged investor trust. As soon as the new tariffs were being considered, traders priced in the impact that the new tariffs may have on global trade flows and liquidity and, thus, set off a flight to safety.
Bitcoin, which is typically considered to be a hedge against inflation and financial instability, reflects risky assets such as stocks this time. The sudden turnaround implied that investors are still apprehensive due to political ambiguity. Altcoins were hit even harder, amplifying market losses across the crypto sector.
Altcoins Join the Downtrend as Uncertainty Deepens
Ethereum price slid below $4,200, losing over 3% in 24 hours. Solana, XRP, and Dogecoin each dropped more than 2%, erasing recent gains from the prior week’s rally. Analysts said the reaction highlights how sensitive digital assets remain to macro and political headlines.
The risk of the tariff is untimely in crypto markets. Bitcoin just recovered following several weeks of lateral movement, driven by the rising institutional performance and ETF inflows. This abrupt geopolitical shirtwaist is threatening to put that development on hold.
Market strategists say that in case trade tensions continue to increase, volatility might increase. Both Washington and Beijing will be followed keenly as the investors await any news, as sentiment is clouded with uncertainty. At this point, it is obvious that, even in the maturing crypto market, politics continues to have a lot of influence on prices.
Interesting read. It’s wild how much global politics can still sway the crypto market. The connection between macro events and Bitcoin remains strong.
[…] in a highly volatile market. Bitcoin price dropped to a low of below $104,000 briefly following the announcement of a 100 % tariff on China by President Trump, leading to panic in the global markets. Although the storm has hit, Strategy does not see market […]
[…] rather than the start of a larger downturn. The sell-off began when U.S. President Donald Trump threatened a 100% tariff on Chinese imports, sending Bitcoin down by 15% and altcoins like Solana plunging […]