Just a week after announcing sweeping 100% tariffs on Chinese imports, U.S. President Donald Trump has walked back the decision, stating in a FOX Business interview that the tariffs “will not stand.” He added that relations with China would be “fine,” signaling a potential thaw in trade tensions. Trump also confirmed plans to meet Chinese President Xi Jinping in two weeks, reversing earlier claims that he had no interest in further talks.
Crypto Market Reacts to Tariff U-Turn
The crypto market, which had been reeling from the tariff announcement, saw a brief recovery following Trump’s remarks. Bitcoin, which had dropped to an intraday low of *$103,500*, rebounded to *$106,000* shortly after the interview. The initial tariff news had triggered the largest liquidation event in crypto history, wiping out *$19 billion* and sending BTC to around *$104,000*.
Broader Forces Driving the Crash
Despite Trump’s reversal, the crypto market continues to face intense selling pressure. Analysts point to large-scale BTC deposits from miners—over *51,000 BTC*—as a key factor. Additionally, fears over bank loan losses involving *Western Alliance Bancorp* and *Zions Bancorporation* have rattled investor confidence. Global bank stocks fell sharply, amplifying concerns about cracks in the credit market.
Risk-Off Sentiment Deepens
The ongoing U.S. government shutdown is further fueling market anxiety. Investors are fleeing risk assets and turning to safe havens like *U.S. Treasurys* and *gold*, which continues to hit record highs. With Bitcoin now at a four-year low, traders are increasingly pricing in a drop below the psychological *$100,000* mark. According to Polymarket data, there’s a *72% chance* BTC dips below that level before year-end.
Frequently Asked Questions (FAQs)
- Why did Trump reverse the China tariffs?
He stated they were unsustainable and emphasized the need for a fair deal with China.
- Did the crypto market recover after Trump’s statement?
Bitcoin briefly bounced from $103,500 to $106,000, but broader pressures remain.
- What other factors are affecting crypto prices?
Miner sell-offs, banking sector fears, and the U.S. government shutdown are key contributors.
