In recent days, the crypto market has experienced a real rollercoaster due to the escalation of the trade war between the USA and China. On October 10, US President Donald Trump announced the introduction of 100% tariffs on Chinese technology goods and new export restrictions on critical software, accusing Beijing of aggressive policies regarding rare earth minerals. This caused panic: the total capitalization of crypto assets fell from $4.25 trillion to $4.05 trillion, wiping out $200 billion, and $BTC plummeted by 10% to $107 thousand. Liquidations exceeded $7 billion per hour, affecting 1.6 million traders, including $ETH (-17%) and $XRP (-30%).
And already on October 12, the situation changed. It turned out that Trump's initial post on Truth Social was based on a misunderstanding regarding China's tariff policy. After clarifications, tensions eased, and investors returned to the market. In one day, the capitalization increased by $180 billion — to $3.87 trillion. Bitcoin jumped 2% above $114,000, Ethereum — by 8% to $4,139, Binance Coin led with +12.34% to $1,297, and Solana — +6.19% to $195.
This event highlights the vulnerability of crypto to geopolitics, but also its potential as a hedge. The trade war that began in 2018 historically caused volatility: in 2019, a drop of $200 billion. Now, with the easing of tariffs, analysts predict the continuation of a bullish run, especially in blockchain and AI. Investors see Bitcoin as 'digital gold' against inflation from tariffs. China, promoting the digital yuan, may accelerate global crypto adoption.
The market is stabilizing, but volatility will remain. Keep an eye on the news: the next escalation could wipe out even more.
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