Bitcoin and Ethereum Plummet Amidst Stock Market Downturn Following Trump’s China Tariff Threat

Following Donald Trump’s comments on potential tariffs against China, Bitcoin and Ethereum witnessed sharp declines. The crypto markets saw over $770 million in liquidations within a 24-hour period, largely impacting long positions. While the market remains cautious due to uncertainties surrounding the U.S. government shutdown, experts believe that Bitcoin might reach $140,000 before falling to $110,000 based on Myriad Markets predictions. Bitcoin traded around $117,890.18 with a market cap of $2.34 trillion, while Ethereum dropped to $4,106.14 with a market cap of $495.67 billion. The negative sentiment also swept through traditional markets like the Nasdaq (down 1.77%), S&P 500 (down 1.25%) and Dow Jones (down 0.83%). Short-term correlations between cryptocurrencies and traditional assets have resurfaced, highlighting heightened geopolitical events’ impact on trading.