U.S. President Donald Trump issued a 100% extra trade tariff on China on Friday in retaliation for China saying it would heighten controls on rare earth exports. The move sparked the sharpest fall in the last ten years for Bitcoin as $BTC fell more than $15,000 in just a few hours. That said, has the situation now been resolved, and is the crash already over?
Carnage and mayhem already changing to optimism
Last Friday, which was particularly deserving of being called “black Friday”, at least in crypto circles, more than $19 billion was liquidated in the space of just a few hours. This wasn’t just the worst wipeout in crypto history, it was the worst by a magnitude of about ten times any previous liquidation events.
Even traders who had already watched the first spectacular fall and who had then entered positions in anticipation of a bounce, were then wiped out in their turn as the price just kept on falling.
After such mayhem and carnage, here we are on Monday, and the Bitcoin price is in full recovery mode. After falling to just below $105,000, the $BTC price is now trading at around $115,400 – a $10,000 revival, with potentially a full recovery taking place by the end of this week.
President Trump has walked back on his threats by posting on his Truth Social account on Sunday that “it will all be fine!”. The U.S. stock market appears to believe this assurance as the S&P 500 and Nasdaq futures markets are now climbing.
Bitcoin tanks but recovery now in full swing
Source: TradingView
The short-term time frame for the $BTC price certainly tells a story. It can be seen that the dip started at $122,600, while up until then it had appeared that it was only a matter of time before $BTC made a new all-time high. However, President Trump had other ideas, and a tirade released on his Truth Social account accused China of holding the world “captive” by monopolising its rare earths.
The U.S. stock market started to fall heavily, although given that Trump’s tirade was released late on Friday, the markets were perhaps fortunate to have been saved from further capitulation by the weekly close of trading.
If the stock market falls heavily, the crypto market is going to absolutely tank, and this is exactly what occ
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Author: Laurie Dunn
