After Trump-Zelensky summit tensions, Bitcoin falls into weekend.
The White House meeting with Ukrainian President Volodymyr Zelensky ended in a fight.
Bitcoin and the S&P 500 fell after the meeting due to potential market panic.
Bitcoin's downturn is a good risk release in a bull market, according to MEXC COO Tracy Jin.
On Friday, US President Donald Trump and Ukrainian President Volodymyr Zelensky discussed resolving Ukraine's conflict with Russia.
Bitcoin (BTC) failed to recoup $85,000 at press time after the conversation.
Trump-Zelensky encounter tenses Bitcoin and stock markets
On Friday, President Donald Trump and Ukrainian President Volodymyr Zelensky argued about the Ukraine-Russia conflict in the Oval Office.
Trump and Vice President JD Vance challenged Zelensky about his Oval Office stance on military aid.
After the conference, financial markets fell further. Bitcoin traded just over $84,000 at press time.
Similar trends are seen in stocks. The S&P 500 and Nasdaq-100 are 200 and 1,200 points below their peaks.
This shows the rising link between cryptocurrency and equities.
Trump's tariff threats on foreign trade partners started the latest sell-offs, but hedge funds exacerbated them.
Since risk-off sentiment rose, Matrixport reports that these businesses have begun unwinding their Bitcoin basis trading owing to poor profitability.
"These hedge funds collectively hold $10 billion in Bitcoin ETFs, and with total inflows reaching $39 billion, this suggests that at least 25% of Bitcoin ETF capital is tied to arbitrage trades," said.
Within a bull market, the recent drop is good risk release. After altcoin and Bitcoin corrections, US markets should follow "Jin said.
Jin was optimistic about 2025 market circumstances, saying the latest downturn matches May 2021.
"The present fall resembles May 2021's market. The market fell rapidly following a sustained increase, establishing a "major correction" scenario. This time, the drop may remove short-term speculative money, allowing a comeback "Jin said.
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