Bitcoin Plunges as Trump’s China Remarks Spark Market Jitters
Bitcoin’s price took a nosedive on Friday, dipping below $119,000. This drop came as stocks and crypto markets reacted to President Donald Trump’s comments about China.
The Dow Jones fell by more than 500 points. U.S. stocks slid amid a broader market downturn. The losses in stocks and crypto followed Trump’s latest remarks on China. He threatened to cancel a planned meeting with Xi Jinping.
Bitcoin had earlier moved to $122,000 as U.S. stocks opened higher. However, it slumped as the equity market plummeted in reaction to Trump’s criticism of China regarding global rare-earth metals.
On Friday, Trump posted on Truth Social about China’s stance on rare-earth metals. He claimed Beijing has sent letters to countries threatening export controls on rare earths. Trump also threatened to cancel an upcoming meeting with Xi Jinping.
Trump noted that the U.S. has strong positions too. He mentioned an upcoming meeting with Xi at APEC in South Korea. Though, he now sees no reason to attend.
As the Dow Jones tanked, Bitcoin fell more than 2% to near $118,560. The benchmark cryptocurrency traded just under the $119,000 mark. With Trump’s latest remarks, bears could eye further downside.
Bitcoin’s daily trading volume was up 13% to over $74 billion. The market remains jittery over a potential new trade war between the U.S. and China.
