Bitcoin Stays Still Despite Trump’s New ‘Trade War’ Remark

Key Highlights

• U.S. President Donald Trump has said that the country is in a trade war with China at present 
• The cryptocurrency market has not reacted quickly to Trump’s new remark after witnessing a historic crash last week
• “There was a big crash, but it worked,” says MIT’s digital currency expert

Today, U.S. President Donald Trump has once again fired a shot against China, saying, “We’re in a Trade War with China Now.”

While replying to a reporter on his view on the tariff war with China, Donald Trump said, “Well, you’re in one now. We have a 100% tariff. If we did not have tariffs, we would be exposed as being nothing.”

However, this time, the cryptocurrency market seems still and untouched at the time of writing this. According to CoinMarketCap, Bitcoin is hovering around $111,035.68 with a tiny spike of 0.03% on an hourly chart. However, its trading volume suffered a massive crash with approximately a 22% drop. While its market capitalization stood at around $2.21 trillion. 

Other altcoins like Ethereum and Solana are also going through a consolidation phase after Trump waged a tariff war against China. At the time of writing, Ethereum and Solana are trading at around $3,958.91 and $193.21, respectively. 

Trump’s Unpredictable Moves in the China Trade War

In less than a week, U.S. President Donald Trump has given mixed signals over his trade policies with China. 

On Friday, Trump gave a fresh warning to China on Truth Social to impose an additional 100% tariff on imports from China from November 1 after China restricted exports of rare earth minerals. 

“Based on the fact that China has taken this unprecedented position… the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” Trump said.

A Chinese government official has also reverted back on this statement, “On the matter of tariff wars and trade wars, China’s position remains consistent. If you wish to fight, we shall fight to the end; if you wish to negotiate, our door remains open.”

However, Trump straight-up punked out on China tariff threats and dialed back the trash talk on Sunday. He said, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt!!!”

Now, once again, his aggressive statement leaves the financial world in the lurch.

Will Crypto Market Absorb a New Hit? 

After Donald Trump’s statement last week, the cryptocurrency market has witnessed one of the biggest crashes. Approximately $19 billion worth of crypto was wiped out in the massive liquidation, which happened due to massive sell-off pressure. 

In one of the largest liquidation events in crypto history, Bitcoin took a sharp fall from around $122,000 to $102,000 in just a few hours. This fall in Bitcoin has also triggered a correlation with other altcoins as Ethereum, Solana, and BNB, which have also plunged over 10%, according to CoinMarketCap.

Later on, the cryptocurrency market reacted quickly and tried to absorb the shock with intense trading volume. However, major cryptocurrencies like Bitcoin and Ethereum are still struggling to recover and regain their peaks. 

However, MIT’s digital currency expert views last weekend’s crypto market crash as no reason for alarm. Instead, it shows the market functioning as intended. 

Neha Narula, director of the Digital Currency Initiative at the MIT Media Lab, said in the interview, “There was a big crash, but it worked. We weren’t talking about bailing anyone out, we weren’t talking about having to revert things.” In other words, the cryptocurrency market was quick to absorb the latest crash.

On the flip side, Dan Gambardello, a prominent figure in the crypto world, raised concerns about the recurring drops in crypto prices. When his wife asked if these fluctuations might be deliberately engineered to unsettle investors, he acknowledged the possibility of market manipulation.