Bitcoin and the broader cryptocurrency market took a sharp dive on Friday after President Donald Trump dramatically escalated his trade war with China. The news sent a shockwave through global financial markets, and crypto was not immune.
On Friday, Trump announced he was raising tariffs on Chinese exports to a staggering 100% and imposing new export controls on all “critical software.” This was a direct response to China’s own recent decision to limit exports of rare earth minerals, which are vital for the tech industry.
The escalating trade battle sent traditional markets tumbling, with the S&P 500 falling by more than 2%. Cryptocurrencies, which are often seen as risky assets, were hit even harder. Bitcoin, the world’s largest cryptocurrency, plunged 8.4%, falling to around $104,782. Ethereum, the second-largest, also dropped by 5.8%.
The sell-off is a clear sign that even in the world of crypto, investors are getting nervous about the growing economic uncertainty. As the two largest economies in the world continue to trade blows, no market is safe from the fallout.
