Bitcoin plunged to a low of $118,497 on Thursday after critical comments from President Donald Trump about China’s rare earth export policies rattled global markets and spurred risk-off sentiment among crypto traders.
Bitcoin prices fell sharply on Friday, briefly touching $118,497 on Bitstamp, following remarks by President Donald Trump criticizing China’s control over rare earth metals. In a Truth Social post, Trump said China was “becoming very hostile” and seeking to impose export controls on global production linked to rare earth resources. “We have been contacted by other Countries who are extremely angry at this great Trade hostility,” Trump remarked. The U.S. President’s statements reignited fears of renewed trade tensions between the world’s two largest economies.
The Truth Social post sparked a wave of investor caution, pushing traders to shed risk assets, with bitcoin leading the decline across the crypto market. Analysts noted that while the selloff may have been exacerbated by automated liquidations, sentiment-driven volatility remains a key factor in digital asset trading. Despite the flash crash, bitcoin quickly recovered some losses, stabilizing above $119,000 in early afternoon trading.
💡FAQ:
- Why did bitcoin fall today? Bitcoin dropped after Trump’s comments about China reignited trade tension fears.
- How low did bitcoin go?It briefly touched $118,497 before recovering slightly.
- What triggered investor concerns?Trump’s remarks suggested China may tighten rare earth exports, worrying global markets.
- Is bitcoin expected to stabilize?Analysts say volatility may persist, but the market could find short-term support above $119,000. Uptober is still in play.