The price of Bitcoin fell to the $118,000 range today after President Trump announced plans to raise tariffs on Chinese goods in response to Chinese export controls on rare earth metals.
Bitcoin’s price is down about 2.3% in the past 24 hours and about 6% since hitting a record high above $126,000 just four days ago.
President Trump He threatened A “massive” increase in tariffs on Chinese goods, signaling a sharp escalation in trade tensions between the US and China and casting doubt on the planned APEC meeting with President Xi. This came after China imposed new restrictions on the trade of rare earth elements and related technology.
“I was scheduled to meet with President Xi in two weeks, at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, but now there appears to be no reason to do so,” Trump said on Truth Social.
China Requires foreign companies To obtain special approval to export products containing trace amounts of Chinese rare earth elements, which are essential for items ranging from jet engines and electric vehicles to laptops and phones.
Trade talks between China and the US this year have touched on rare earths, TikTok and tariffs, with more than three rounds held so far. After the May talks in Geneva, the United States said that China had agreed to ease some restrictions on the export of rare earth elements.
All markets reacted negatively, echoing sentiment in April when President Trump’s “Liberation Day” tariffs rocked markets. The tariffs in April, through Executive Order 14257, declared a trade deficit emergency and imposed sweeping US import duties.
Bitcoin price reaction
Bitcoin started October on a high, reaching all-time highs above $126,000 in the first week. In the past few days, the price has fallen to the $121,000 range.
Some analysts point to signs that the Bitcoin market has entered what many describe as the “euphoric phase” of the current bull cycle.
If the historical pattern holds, Bitcoin’s current euphoric phase could carry it towards the $180,000 to $200,000 region before sentiment changes.
Bitcoin has risen more than 30% since the beginning of the year, supported by continued inflows into US-listed bitcoin exchange-traded funds, renewed investor confidence in the digital asset, and expectations that the Federal Reserve will move toward lowering interest rates.
Cryptocurrency-related stocks, such as Circle (CRCL), Robinhood (HOOD), Coinbase (COIN), and MicroStrategy (MSTR), fell 3%-6% at times over the course of the day.
The post Bitcoin Price Sinks To $118,000 Amid New Trade Tensions first appeared on Investorempires.com.
