$1.4 Billion Loss for Bitcoin as Market Shifts
Bitcoin has fallen significantly in the last few days and is one of the victim's of the heated trade war between China and the U.S.
Quick overview
- Bitcoin (BTC) dropped 1.9% on Friday amid escalating trade tensions between China and the United States.
- Investors experienced a $1.4 billion decrease in Bitcoin's trading value, now valued at $117,891 (BTC/USD).
- The cryptocurrency market, previously resilient, is now reacting negatively to renewed tariff threats from President Trump.
- Ethereum (ETH) and XRP also saw significant declines, with XRP losing its third-place position in the cryptocurrency rankings.
Bitcoin (BTC) dropped 1.9% on Friday as multiple markets reacted strongly to heated tensions between China and the United States over trade talks.
Bitcoin investors have seen a $1.4 billion decrease in the value of what was traded over the last 24 hours as the price of the token dropped nearly 2%. Now valued at $117,891 (BTC/USD), investors are pulling out in fear of a tightening economy after President Donald Trump threatened to drastically increase tariffs on Chinese goods.
There was more than $77 billion in Bitcoin over the last day, and investors saw a major dip in that value compared to the previous day. Bitcoin had reached a record high just four days ago, but the coin has since slumped and may have trouble recovering if the trade war continues to heat up.
Tariffs Bite into Crypto Market
It looked like the cryptocurrency market was nearly immune to trade talks and tariff threats as Donald Trump repeatedly issued new tariffs and talked about even more over the past few months. Tariffs were a major factor early on in the year when Trump began issuing them to some of its staunchest trade partners, but as the year progressed and it seemed like he was willing to negotiate and other leaders were willing to concede, the pressure disappeared from the crypto market.
Now with China at an impasse with the United States, it appears that tariffs are a major concern once more. China has refused to allow soybeans from the United States into China, and they are charging ships from the US high port fees. They have also initiated an antitrust investigation into Qualcomm.
Trump stated on Truth Social that he may cancel the planned trade meeting with Xi Jinping later in the month as a result, and he has threatened to issue stronger tariffs against the Chinese. Because of the increasing tensions between the two countries, the crypto market is plunging sharply after recent highs.
Ethereum (ETH) is down 5.37% for the day, and the recently skyrocketing XRP (XRP) has lost 10% over the last week and lost its third-place position on the cryptocurrency charts. Bitcoin is down just 3.36% for the week, but there is concern that it will drop much lower as the trade war heats up.
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