It’s déjà vu for Bitcoin bulls all over again, as Monday’s rally to an all-time high didn’t trigger FOMO, but rather a rapid retreat. This decline accelerated considerably during the American action late Friday morning, after tensions linked to the trade war between the United States and China intensified.
US President Donald Trump said minutes ago in a Truth Social article that he was preparing a “massive increase” in tariffs on Chinese goods in response to China’s imposition of export controls on rare earth metals.
Following the publication, Bitcoin dipped below $119,000 from $122,000. Ether Solana and XRP each participated in the rapid decline.
The fall in crypto prices also weighed on stocks linked to the sector. Circle (CRCL) fell more than 6%. Robinhood (HOOD), which derives much of its trading business from crypto, was down 5%.
Coinbase (COIN) also lost 5%, while MicroStrategy (MSTR) fell around 3%.
The news also spread to traditional markets. WTI crude oil fell nearly 4% below $60, its lowest price since early May. The S&P 500 and Nasdaq were down 1.6% and 1.3%, respectively.
Gold? It rose more than 1% to over $4,000 an ounce as the yellow metal once again proved itself, not bitcoin, the risk-free asset of choice for investors.
At the current price of $118,800, bitcoin is down about 2% in the past 24 hours and about 6% since hitting a new all-time high above $126,000 just four days ago.
