Trump said in one sentence, Bitcoin plummeted by $7,000!

Last night’s cut caused the crypto circle to explode with more than $1.1 billion in losses, Bitcoin was instantly hammered down to 103213, and leveraged traders were left with corpses everywhere. The largest liquidation was over 201 million on the BN platform, quite a spectacular scene.

What triggered the crash? Trump stated: "Choose your side within two weeks globally!"

With the trade agreement expiring soon, Trump threw down a "tariff nuclear bomb", meaning simply don’t talk and just act. Coupled with his earlier hint in the White House about wanting to fight, market risk sentiment exploded. U.S. stocks can pretend nothing happened, but the crypto circle is not that durable; it shatters at the slightest touch.

The Federal Reserve is also in a tough spot, with data collapsing across the board: PPI, CPI, employment rates—none of them are good.

Unemployment claims have skyrocketed, and Powell is being roasted at the volcano's mouth. Trump didn’t forget to add a jab: "Isn’t a 100 basis point cut reasonable?" This has put the Fed in a position where cutting rates seems like admitting defeat, while not cutting is the original sin.

On the technical front, Bitcoin's current plunge belongs to an oversold situation, with support around 103000; perhaps even the big players are tired of selling.

But don’t think it’s stable; Trump’s mouth could drop a bomb at any time. Ethereum also followed with a plunge, with rumors suggesting a certain financial company might be in trouble, putting the 2400 level at risk.

In the short term, this wave of selling has severely damaged market sentiment; what will support it next? It all depends on whether the Federal Reserve can truly ease up on rate cuts in September. Don’t forget, there are also ETFs, institutions, and regulations as delaying tactics; if any good news is released, the fuse for a rebound can be lit at any moment.

To sum up: the current situation is like a dance on the edge of a knife for risk assets; staying alive is more important than anything else.

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