Bitcoin Falls on Trade War Fears

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🚨 Key Takeaways:

• Bitcoin dips below $112,000, falling over 3% in 24 hours.

• Renewed U.S.–China trade tensions spark risk-off sentiment across global markets.

• Ethereum and Dogecoin drop around 6%, while total crypto liquidations exceed $630 million.

• Analysts still see “higher lows” forming — suggesting bullish momentum may not be broken.

💥 Bitcoin Falls on Trade War Fears

After a week of strong recovery, the crypto market turned red on Monday as escalating trade war rhetoric between the U.S. and China rattled global investors.

Bitcoin dropped below $112,000, its lowest point in nearly two weeks, while Ethereum slid to around $2,950, and meme coins like DOGE saw sharper losses. Data from Coinglass shows over $630 million in leveraged positions were liquidated within 24 hours — with long traders hit hardest.

The move comes after President Trump hinted at potential new tariffs on Chinese software imports, reigniting the risk-off sentiment that sparked last week’s record-breaking crypto selloff. Beijing responded with warnings of “firm countermeasures,” intensifying investor anxiety.

📊 Analysts: Still a Bullish Structure

Despite the pullback, many analysts remain optimistic. On-chain data from Glassnode indicates that over 90% of Bitcoin’s supply remains in profit, suggesting long-term holders are still confident.

Technical analysts also note that Bitcoin is still forming higher lows, maintaining its upward structure since mid-August. The correction, they say, reflects profit-taking after a strong rally, not a shift in market trend.

🌍 Macro Picture: Volatility Meets Opportunity

Markets remain hypersensitive to geopolitical developments — especially anything tied to U.S.-China relations, which heavily influence liquidity and risk appetite.

Meanwhile, some traders are rotating into stablecoins and short-term yields, waiting for clarity before re-entering high-volatility positions. Others see this dip as a buying opportunity, particularly if the Federal Reserve maintains its expected rate-cut trajectory later this quarter.

📈 Market Snapshot

🧭 Bottom Line

The recent dip highlights how intertwined crypto and macro geopolitics have become. While short-term volatility is back, long-term momentum remains intact — especially if liquidity expands and global risk sentiment stabilizes.

For now, traders are keeping one eye on Washington and Beijing, and the other on the charts.

Sources:

• Reuters – Bitcoin slips under $112K amid U.S.-China tariff tensions

• CoinDesk – Bitcoin, ETH fall as China hits back on tariffs

• Bloomberg – Crypto markets jitter as trade war fears resurface

• Glassnode – On-chain update: Market structure remains bullish

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