U.S. President Donald Trump sparked panic in the crypto market after threatening to massively increase tariffs on China. This led to a sharp drop in Bitcoin, which fell below the $120,000 support level following the president’s threat.
Bitcoin Drops As Trump Threatens China
TradingView data shows that BTC sharply dropped below $120,000 as President Trump threatened to increase tariffs on China. The flagship crypto was trading just above $121,000 before the president’s comments, but quickly fell as the threat sparked market-wide tensions.
In the Truth Social post, Trump said that China had become “hostile.” He further remarked that one of the policies that the U.S. is considering at the moment is a massive increase in tariffs on Chinese products coming into the country, a development that is bearish for Bitcoin and the broader crypto market. The U.S. president also said that they are considering many other countermeasures.
This development has revived memories of the Trump tariffs, which led to a trade war between the U.S. and China. However, both countries were working on a trade agreement, which prompted the U.S. president to pause the proposed tariffs on China.
With tensions once again building, Bitcoin and other risk assets are at risk, given how macro uncertainty could impact markets. Besides BTC, altcoins also witnessed sharp declines on the back of Trump’s comments.
The Ethereum price dropped below $4,200, down over 3% on the day. Solana, XRP, and Dogecoin are also down over 2%, with most of the losses coming following Trump’s threat to China.
