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Bitcoin took a sharp dip, falling below $119,000, after former U.S. President Donald Trump reignited trade tensions with China by suggesting the possibility of renewed tariffs. The comments triggered a quick reaction in both traditional and crypto markets, as investors moved to reduce exposure to riskier assets amid rising geopolitical uncertainty.
The warning came during a public appearance in which Trump hinted that, if reelected, he would reintroduce aggressive trade policies targeting Chinese imports. Markets responded swiftly, with U.S. equities retreating and digital assets like Bitcoin also taking a hit. Traders see the threat of a trade war as a potential headwind for global growth, which can tighten liquidity and reduce risk appetite.
Bitcoin, often viewed as a hedge in times of financial instability, has not been immune to macro-driven volatility. While the asset has historically benefited from longer-term inflationary trends and currency devaluation, short-term reactions to political headlines still cause price swings. The latest drop is part of a broader shift in sentiment as markets digest the potential impact of renewed trade barriers.
Despite the pullback, analysts say Bitcoin remains in a structurally strong position, with growing institutional interest and a favorable supply narrative. However, its near-term performance is likely to be shaped by global developments, including U.S. economic policy and international trade dynamics. For now, traders are watching closely to see if support levels can hold amid rising uncertainty.
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