Bitcoin, the market leader in the cryptocurrency market, has dropped significantly below the $110,000 mark due to the escalating trade conflict between the US and China. This is analyzed as a result of the recent correction phase, which followed the achievement of a new all-time high, being further exacerbated by the expansion of geopolitical tensions.
According to the US cryptocurrency exchange Coinbase, as of 5:00 PM local time (EST) on the 10th, the price of one Bitcoin was traded at $114,173, a sharp drop of 3.85% compared to 24 hours ago. Compared to its all-time high of around $126,200 recorded on the 6th, this represents a crash of more than $12,000 in just four days.
The situation is the same for Ethereum, the second-largest by market capitalization. At the same time, the price of Ethereum plunged by a sharp 8.23%, giving up the $4,000 mark and falling to $3,861. In addition, other major cryptocurrencies also experienced significant price adjustments simultaneously, with XRP (Ripple) falling 4.21% to $2.48, Solana dropping 6.27% to $197.06, and Dogecoin decreasing 6.27% to $0.22.
The main trigger for this market crash was pulled when US President Donald Trump made remarks on his social media platform 'Truth Social' suggesting heightened trade tensions with China. President Trump criticized China, stating that "very strange things are happening in China" and that China was notifying countries worldwide of export controls on all elements related to 'rare earth' production.
President Trump continued his warning, saying, "One of the policies being reviewed at this moment is a massive tariff increase on Chinese goods entering the United States," adding, "Likewise, many other countermeasures are being seriously considered." He also mentioned the possibility of canceling the scheduled US-China summit, further maximizing market uncertainty, by adding, "I was scheduled to meet with Xi Jinping (Chinese President) at the APEC (Asia-Pacific Economic Cooperation) meeting in Korea in two weeks, but now there seems to be no reason for that."
CoinDesk, a specialized cryptocurrency media outlet, analyzed, "This plunge is a price correction that began immediately after the recent all-time high, which has been amplified and deepened by the massive risk of escalating US-China trade tensions." It is interpreted that as global economic uncertainty grows, investors are shying away from investing in cryptocurrencies, which are classified as risky assets. As global geopolitical tensions directly affect the cryptocurrency market in this way, short-term volatility expansion is inevitable.
[Copyright (c) Global Economic Times. All Rights Reserved.]
