A "Soybean Storm" - $20 Billion Contracts in the Crypto Space Turn to Dust

At the end of September, #TikTok U.S. operations took off, and U.S.-China relations were once optimistic.

But just two weeks later, the situation took a sharp turn - U.S.-China relations soured, global markets shook, and the crypto contracts collapsed by over $20 billion.

Many people ask: Who triggered the market this time?

The answer may be two words - Soybean.

1. Soybean: An Unexpected Spark

American soybeans had a bumper harvest, yet due to trade friction, China did not purchase a single order.

Warehouses are full, prices are falling, and farmers are complaining.

Trump had to frequently mention "soybeans" in an attempt to find a way out for the agricultural states.

2. Timeline of Escalation

October 3: The U.S. announced port service fees on Chinese vessels;

October 9: China escalated export controls on rare earths and graphene;

October 10: China retaliated by imposing "special service fees" on U.S. vessels;

That same evening: Trump threatened to cancel the meeting and announced an additional 100% tariff.

As a result, U.S. stocks plummeted, the USD decoupled, and the crypto space collapsed across the board.

In just a few hours, the liquidation amount exceeded $20 billion, reaching a new high for the year.

3. Why "Soybean" Became the Key

Chips and rare earths can be negotiated, but soybeans affected Trump's voter base.

The agricultural states are his stronghold, and soybeans are a major export.

With declining income and dissatisfied voters, he had no choice but to increase pressure on China.

4. Aftermath: A Reversal is Still Possible

This storm resembles a political game before APEC.

Trump threatened to cancel the meeting while hinting that a meeting might still happen,

a typical "stir first, talk later" tactic.

Both sides have reasons to compromise:

The U.S. wants to stabilize the market and maintain voter support;

China wants to stabilize expectations and foreign trade.

Therefore, the possibility of a reversal remains high.

5. A Familiar Plot, Back Again

Perhaps in a few days, we will see that tweet again:

"I spoke with President Xi, and our relationship has never been so harmonious!" 😆

Prepare your spot, the market is not over; by the end of the year, it's highly probable that U.S.-China talks will stabilize things, and risky assets, particularly tech stocks, will soar even higher in the bubble.

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