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Bitcoin Drops Below $119K as U.S.-China Trade Tensions Escalate
Cryptocurrencies came under pressure Friday as the prospect of a renewed U.S.-China trade war spooked investors.
After hitting a fresh all-time high on Monday, Bitcoin (BTC) failed to sustain momentum. The decline accelerated during late-morning U.S. trading following comments from President Donald Trump on Truth Social announcing a “massive increase” in tariffs on Chinese goods, in response to China’s export controls on rare earth metals.
Following the announcement, Bitcoin fell from around $122,000 to below $119,000. Other major digital assets also slid: Ether (ETH) dropped to $3,846, Solana (SOL) to $184, and XRP similarly fell.
The crypto sell-off spilled over into related equities. Circle (CRCL) lost over 6%, Robinhood (HOOD) fell 5%, Coinbase (COIN) dropped 5%, and MicroStrategy (MSTR) slid about 3%.
Traditional markets also reacted. WTI crude oil tumbled nearly 4% below $60 a barrel, its lowest level since early May. The S&P 500 and Nasdaq declined 1.6% and 1.3%, respectively. Meanwhile, gold rallied over 1%, reclaiming $4,000 per ounce, reaffirming its status as the preferred risk-off asset.
At around $118,800, Bitcoin is down roughly 2% in the past 24 hours and about 6% since setting a record above $126,000 just four days ago.
