Cryptocurrencies show a strong recovery this Monday after starring in one of the most violent episodes of volatility in its history during the closing of last week, as a result of new trade tensions between the US and China. Bitcoin (BTC) is trading above US$114,000 again after having pierced the US$110,000 floor on Friday, when it registered a drop of more than 12% in just 24 hours.
Ethereum (ETH)for its part, fell by 16% and lost the support of the US$3,700 in that same period. Now, the main “altcoin” in the market operates near US$4,100 after rising more than 7% in the last day. Other cryptocurrencies like Binance Coin (BNB), XRP, Solana (SUN), Dogecoin (DOGE) and Cardano (ADA) They also show significant progress, some even with double-digit increases.
Trump and the escalation with China
As usually happens with each episode of extreme volatility in the markets, all eyes point towards the White House. Last Friday, US President Donald Trump once again shook global markets by threatening China with 100% tariffs to its products and by rejecting a meeting with its Chinese counterpart, Xi Jinpingoriginally planned on the bilateral agenda.
Trump’s statements came just one day after China decided to once again tighten controls on the export of rare earths, one of the most strategic resources for the US technology industry.
Beijing’s response was immediate. China announced new port fees for US-owned, operated or flagged vessels, effective October 14. These levies replicate the port fees that the United States had introduced at the beginning of the year for vessels linked to China.
Additionally, the Chinese antitrust regulator launched an investigation into the technology company Qualcommwhich shows Beijing’s willingness to expand retaliation beyond the commercial and logistical sphere.
Signs of bloating
Trump’s subsequent comments on Sunday were more conciliatory. On his social networks, the president wrote: “Don’t worry about China, everything will be fine!”, and added that The United States “wants to help China, not harm it”.
Beijing also moderated its tone. The Chinese Ministry of Commerce on Sunday called the new controls on rare earths a response to recent US measures, saying: “We do not want a tariff war, but we are not afraid of it either“.
Historic settlements but optimism remains
The impact on the crypto market was immediate and brutal. The violent price drops led some analysts to draw comparisons with the collapse of March 2020when lockdowns due to the Covid-19 pandemic unleashed panic in the markets.
The widespread sell-off led to settlements for more than US$19,000 million in a 24-hour periodbecoming the largest daily settlement event in the history of cryptocurrencies measured in terms of dollar value. According to data from CoinGlassthe “actual total” of settlements is “probably much older”since Binance, the largest exchange in the world, does not report its figures as quickly as other platforms.
In any case, optimism remains within the sector. Mauricio Di BartolomeoCSO and co-founder of the Bitcoin lending and financial services platform, Lednexplained to Scope: “Compared to Bitcoin, gold appears to be overvalued, so I expect BTC to close the gap. My base scenario is a year-end close of around US$150,000, with room to exceed that figure.”.
Source: Ambito
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