Bitcoin saw a drastic drop last Friday, after US President Donald Trump escalated the trade war with China. The value of the most famous cryptocurrency fell below 107 thousand dollars, which many consider one of the biggest liquidations in the history of cryptocurrencies. Traders around the world are closely monitoring further developments as tensions between the US and China further affect the market.
Trump announced an increase in tariffs on Chinese exports to the US, in response to restrictions that China is introducing around rare earth metals, key to technological and industrial production. This immediately caused panic in the markets, especially among Bitcoin and Ethereum investors.
“Bitcoin and ethereum accounted for $3.3 billion of those liquidations. In total, nearly $9.6 billion of positions were liquidated in the last 24 hours, representing the largest one-day wipeout in cryptocurrency history,” said Sean Dawson, head of research at Derive.xyz. According to him, almost 7 billion dollars were deleted from the market within one hour, of which 5.5 billion dollars were long positions.
Bitcoin fell to $117,000 on Friday before falling below $107,000, a 12 percent drop in just 24 hours. Dawson noted that the flash crash was extremely fast and intense, which has further worried investors.
While the market has seen strong growth this year, fueled by Trump’s support and growing interest in cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana and BNB, there is now great uncertainty. Traders are bracing for further declines, and concerns about the future of the US dollar are further increasing investor nervousness.
The drop shows how global political moves can directly affect the crypto world, where volatility can bring both big losses and quick profits.
It is difficult to estimate in which direction the growth of bitcoin will go and whether it will grow at all, but it is certain that this cryptocurrency attracts huge public interest, and more and more people decide to invest money in it.
