U.S. President Donald Trump has softened his stance on the recently announced 100% tariffs on Chinese imports, signaling a possible easing of trade tensions between Washington and Beijing. His comments came as the crypto market plunged, with Bitcoin leading a widespread sell-off fueled by economic uncertainty and investor panic.

Trump Backtracks on Tariffs Amid Market Turmoil

In a FOX Business interview, Trump firmly stated that the 100% tariffs on China “will not stand,” adding that both nations “will be fine.” The U.S. president also revealed plans to meet Chinese President Xi Jinping in two weeks, reversing his earlier position that he was no longer interested in negotiations. Trump admitted that the tariffs were “not sustainable,” but emphasized the need for a fair deal to protect U.S. interests.

His remarks triggered a brief relief rally across markets. Bitcoin price, which had fallen to an intraday low of $103,500, quickly bounced back to $106,000. However, the rebound was short-lived, as broader market sentiment remained weak following a volatile week. Just last week, the announcement of Trump’s tariffs wiped out $19 billion from the crypto market in what analysts described as the largest liquidation event in its history.

Despite Trump’s reversal, analysts say the crypto crash extends beyond trade tensions. Broader economic fears, miner sell-offs, and institutional uncertainty continue to pressure Bitcoin and altcoins alike. Traders remain cautious as volatility persists, and investors seek safer havens in gold and U.S. Treasurys.

Multiple Factors Deepen Crypto Market Decline

While the tariff drama sparked the sell-off, on-chain data shows that Bitcoin whales and miners intensified the downturn. Over the past week, miners reportedly transferred more than 51,000 BTC to exchanges, adding significant selling pressure. This heavy distribution coincided with broader risk-off sentiment, as investors reacted to mounting macroeconomic concerns.

Meanwhile, fears surrounding potential bank loan losses at Western Alliance Bancorp and Zions Bancorporation added to the uncertainty. Global bank stocks also tumbled amid growing worries of stress in the credit market. Furthermore, the ongoing U.S. government shutdown, one of the longest in history, has heightened anxiety across risk markets.

With Bitcoin now hovering near a four-year low, traders are bracing for further downside. According to Polymarket data, there’s a 72% probability that BTC could dip below the psychological $100,000 mark before year-end. Despite Trump’s softer tone on China, the broader market remains fragile, showing that crypto’s path forward is still tied to global economic crosswinds.