Trump crashes Bitcoin and stock markets with return of trade war

Bitcoin crashed by some 10% yesterday after US President Trump threatened 100% import tariffs against China just before the end of year holiday season was set to begin. US stock markets also fell sharply. Trump is thus reviving the trade war he himself started in April.

ETF

With so much institutional money that has entered the crypto market since the launch of Bitcoin ETFs in 2024, digital currencies are now also prone to quickly following the direction of the stock markets. US President Donald Trump threatened yesterday to reimpose large import tariffs on China and to reduce exports of software products (i.e., chips) from his country. This pushed the markets so deeply into the red that the S&P 500 recorded its worst day since April.

With this threat, the White House completely revitalized the trade war, which began in April of this year and then faded away.

Support

Bitcoin fell from a price of $120,000 to as low as $102,000 in the afternoon in a so-called “Flash Crash,” a move not seen in a long time.

This leads us to two conclusions at this point: the largest digital currency is more dependent on the geopolitical situation than ever before, and there is still very strong support around the $100,000 level.

At the time of writing, Bitcoin is already trading at $111,000 again.