It’s another sense of deja vu for Bitcoin bulls, as Monday’s rally to all-time highs caused a sharp pullback rather than FOMO. The U.S. action early Friday sharply accelerated that setback after tensions in the U.S.-China trade war escalated.
In a post on Truth Social a few minutes ago, US President Donald Trump said he was preparing a “significant increase” in tariffs on Chinese goods after China earlier imposed export restrictions on rare earth metals.
Bitcoin after receiving the post BTC$111,480.33 It fell below $122,000 to $119,000. ether Ethereum$4,005.03Solana sol$201.48 and XRP each also joined in the rapid decline.
Falling crypto prices also weighed on stocks related to the sector. Circle (CRCL) fell more than 6%. Robinhood (HOOD), which derives most of its trading activity from cryptocurrencies, fell 5%.
Coinbase (COIN) also fell 5%, and MicroStrategy (MSTR) fell about 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 fell 1.6% and 1.3%, respectively.
gold? It rose more than 1%, regaining more than $4,000 an ounce, as the yellow metal, over Bitcoin, showed once again that investors are the risk-off asset of choice.
At its current level of $118,800, Bitcoin is down about 2% in the past 24 hours and about 6% since hitting a new record of over $126,000 just four days ago.
