Trade wars and Bitcoin blues: déjà vu as U.S.–China tensions weigh on crypto

Renewed U.S.-China trade tensions, specifically new tariffs and export controls announced by President Trump, triggered a sharp correction in Bitcoin, which tumbled over 13% from highs above $126,000, wiping out over $19 billion in leveraged positions. This market reaction mirrors a previous 30% drawdown seen earlier this year during similar geopolitical flare-ups, creating a sense of déjà vu. The selloff was exacerbated by liquidity stress and contagion, highlighting how intertwined crypto liquidity is with global macro risks. Despite the volatility and deleveraging, the article suggests Bitcoin's status as a macro hedge remains intact, evidenced by institutional holdings and significant retail buying during the dip. However, analysts suggest that if the previous pattern holds, this macro-induced turbulence could persist into November before Bitcoin's long-term trend resumes.

(Source：CryptoSlate)