Bitcoin enthusiasts experienced a familiar scenario on Monday as the cryptocurrency surged to unprecedented levels, only to face a rapid downturn. This decline accelerated significantly late Friday morning in the U.S., coinciding with escalating trade tensions between America and China.
President Donald Trump announced via Truth Social that he is planning a substantial hike in tariffs on Chinese imports. This move comes as retaliation against China’s recent decision to impose export restrictions on rare earth elements.
Following Trump’s announcement, Bitcoin’s value $111,480.33 dropped sharply from $122,000 to below $119,000. Other cryptocurrencies like Ether $4,005.03, Solana $201.48, and XRP also experienced significant declines.
The downturn in digital currency values impacted related stocks as well. Circle (CRCL) saw its shares decrease by over 6%, while Robinhood (HOOD), heavily reliant on crypto trading activities, fell by 5%.
Coinbase (COIN) suffered a 5% loss too, and MicroStrategy (MSTR) dipped approximately 3%.
This news sent ripples through conventional markets as well: WTI crude oil plummeted nearly 4%, dropping below $60—its lowest since early May—and both the S&;P;&;500&semi&semi&semi&semiand Nasdaq indices decreased by 1&46percent&&comma& respectively.
The gold market reacted positively&comma rising more than &percnt1&comma surpassing &dollar4000 per ounce&period As investors once again turned towards gold instead of bitcoin for safety amid uncertainty.
<pAt present&comma bitcoin stands at &dollar118800&comma marking an approximate drop of &percnt2 over the last day and about &percnt6 since reaching its new peak above $126000 just four days ago.