U.S. President Donald Trump announced on Friday during an interview with FOX Business that high tariffs on China “will not stand,” aiming to reduce trade tensions, but Bitcoin’s price still fell sharply to below $104,000 as global caution gripped the crypto market. This drop shows that market fears were stronger than the good trade news.
Following President Trump’s remarks, which also confirmed a meeting with Chinese President Xi Jinping in two weeks, the Bitcoin market failed to hold its small bounce.
Initially, Bitcoin reached $106,000 but quickly fell back because traders felt persistent caution. This reaction confirms that traders worry about more than just tariffs.
BTC Price action | Source: CoinMarketCap
Meanwhile, Data shows that money is leaving the crypto market at a fast rate. For instance, Coinglass reported that Bitcoin saw over $1.66 billion taken out in five days. This large outflow makes the market weak and vulnerable to price changes. Therefore, stabilization in money flow is needed for any recovery.
Technically, the price chart shows clear signs of worry for investors. Bitcoin’s daily chart confirmed that it broke below the $108,000 price level. That level had been a very strong support area before this recent drop. Now, experts are looking at $103,500 as the next important demand zone.
The crucial psychological support of $100,000 is now directly under threat. If the price keeps dropping, the next major support could be as low as $92,000.
BTC Technical analysis | Source: TradingView
It is important to remember that even though last week’s threat of 100% tariffs on China caused a huge crash, it is not the only driver for this recent drop in price.
For instance, large investors and miners are selling off Bitcoin quickly. These miners have deposited over 51,000 BTC into exchanges recently, creating big selling pressure.
Furthermore, larger global concerns are prompting investors to move away from riskier assets like Bitcoin. These fears include concerns about bank losses and the long U.S. government shutdown.
As a result, investors are buying safe assets such as U.S. Treasurys and gold, which keep setting new all-time highs.
Also Read: Tether Freezes $13.4M in USDT Across 22 Wallets Linked to Crime Activities
