U.S. President Donald Trump has stated that the 100% tariffs on China will not stand, just a week after announcing them. This comes as the crypto market crashes, partly due to the trade tensions between the two countries.
Trump Backtracks on China Tariffs Amid Crypto Market Crash
The U.S. president said “no” when asked during a FOX Business interview whether the China tariffs would stand. He also remarked that they will be fine with China, a move that eases trade tensions between the two countries.
Trump confirmed that he will meet with Chinese President Xi Jinping in two weeks, after earlier indicating that he was no longer interested in the meeting. The U.S. president further admitted that his 100% tariffs on China are not sustainable, although he added that they have to reach a fair deal.
This development comes as the crypto market crashes today, with the Bitcoin price dropping to an intraday low of $103,500. Notably, BTC alongside the broader market sharply bounced following Trump’s statement, with the flagship crypto touching $106,000.
Source: TradingView; Bitcoin Daily ChartMeanwhile, Trump’s statement comes just a week after he announced 100% tariffs on China, which triggered the largest liquidation event in the crypto market. $19 billion was wiped out from the market last week, as Bitcoin crashed to around $104,000.
However, as CoinGape recently reported, the Trump tariffs are just one of the factors contributing to the market crash. The market began its recent crash yesterday and has continued to decline despite Trump’s non-tariff announcement.
Other Factors Contributing To The Crash
Another factor contributing to the crypto market crash is the significant selling pressure BTC is currently facing from whales and miners. CoinGape reported that these miners have deposited over 51,0000 BTC into exchanges over the last week.
As CoinGape reported, the market is also witnessing massive sell-offs amid macro fears, including concerns over bank loan losses involving Western Alliance Bancorp and Zions Bancorporation. Global bank stocks also fell today over potential cracks in the credit market.
Furthermore, the prolonged U.S. government shutdown is sparking concerns, especially as market participants price in the possibility of this being the longest shutdown ever. As such, investors are fleeing risk assets and moving towards U.S. Treasurys and gold, which continues to hit new all-time highs.
With Bitcoin dropping to a four-year low, traders are now pricing in the possibility that it could fall to the psychological $100,000 level. Polymarket data shows that there is currently a 72% chance of BTC dipping below $100,000 before this year ends.
Source: https://coingape.com/trump-says-china-tariffs-will-not-stand-as-crypto-market-crashes/
