Bitcoin experienced a significant decline, with its price falling below $119,000 on Friday as both stocks and cryptocurrencies reacted to President Donald Trump’s statements regarding China.
Summary
- On Friday, Bitcoin plummeted to a low of $118,500 amid losses in the stock market.
- The Dow Jones dropped over 500 points, reflecting a downturn across U.S. stocks.
- Both stock and crypto losses followed President Donald Trump’s latest remarks on China, including threats to cancel an upcoming meeting with Xi Jinping.
Initially, Bitcoin had surged to $122,000 as U.S. stocks opened on a positive note, but it fell sharply as the equity market declined, responding to Trump’s criticisms regarding China and global rare-earth metals.
What did Trump say?
On Friday, Trump expressed his views on his Truth Social account about what he described as China’s increasingly aggressive stance on rare-earth metals.
According to Trump, Beijing has sent warnings to several nations threatening additional export controls on rare earths. He indicated the possibility of canceling a planned meeting with Xi Jinping.
“We have been contacted by other Countries who are extremely angry at this great Trade hostility, which came out of nowhere. Our relationship with China over the past six months has been a very good one, thereby making this move on Trade an even more surprising one. I have always felt that they’ve been lying in wait, and now, as usual, I have been proven right!” Trump posted.
He pointed out that while China holds monopoly positions, the U.S. does as well, claiming its position is “much stronger and far-reaching.” Trump also referenced an upcoming meeting with Xi.
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so.”
Bitcoin retests $118,500 level
As the Dow Jones fell by more than 500 points, Bitcoin (BTC) dropped over 2% to around $118,560 across major exchanges.
The leading cryptocurrency was trading just below the $119,000 threshold at the time of this writing. However, with Trump’s recent comments inciting concerns over a potential trade war between the U.S. and China, bears may be looking at further downside movements.
Bitcoin’s daily trading volume increased by 13% to over $74 billion.
