Crypto Quill

Bitcoin showed no big moves Friday, even as President Donald Trump backed off from tough tariffs on China. This unexpected shift sparked chatter in markets, but the top crypto stayed calm around $106,000. What does this mean for investors watching global trade tensions? Dive in to see the full picture.

President Trump made headlines late Thursday when he said the planned tariffs on China “won’t stand.” This came just weeks after he ramped up talk of a trade war, including threats of 100% duties on Chinese goods starting November 1. The reversal aims to ease tensions before his upcoming visit to China in two weeks.

Markets had braced for pain. Earlier announcements wiped billions from crypto values, with Bitcoin dropping as low as $104,000 in some trades. But this time, Trump’s words led to a quick uptick instead of chaos. Bitcoin jumped 2% right after the news, hitting $106,000 before settling back.

Analysts say this shows Trump’s team wants talks, not fights. One report from crypto watchers noted the move could calm fears of supply chain hits, especially in tech and mining gear that Bitcoin relies on.

The change follows a rough patch. Last week, tariff threats caused a flash crash, erasing $500 billion from the crypto market in days. Liquidations hit $19 billion as traders panicked.

How Bitcoin Weathered the Storm

Unlike past dips, Bitcoin held its ground this time. Prices hovered between $104,000 and $106,000 through Friday, with no wild swings despite the news. Ethereum, another big player, dipped below $3,800 but clawed back some losses.

This stability surprises many. In February, similar tariff talk from Trump sent Bitcoin down 7.2% in a week. Posts on X highlighted fears of a weaker U.S. dollar driving inflation, which some see as good for Bitcoin as a safe haven.

Crypto markets often overreact to political news, but this remark barely budged Bitcoin’s value.

Traders point to strong support levels. Bitcoin bounced off $104,000, a key mark from recent lows. Data from exchanges shows trading volume spiked briefly but calmed fast, with only $600 million in positions wiped out—far less than last week’s billions.

Why the calm? Some experts link it to growing Bitcoin ETFs. These funds, popular since early 2025, add stability by drawing in steady investors. A study by Bitwise in February predicted trade wars could boost Bitcoin by weakening traditional money.

What Experts Are Saying

Market pros have mixed views on this twist. Jeff Park from Bitwise says trade spats might push more cash into Bitcoin as a hedge against inflation. He based this on data from past U.S.-China clashes, where Bitcoin gained 15% on average during high tension periods back in 2018-2019.

Others warn of risks. If talks fail, renewed tariffs could disrupt China’s role in crypto mining, which still handles about 20% of global Bitcoin hashing power, per a 2024 Cambridge Centre for Alternative Finance report.

Here’s a quick look at recent Bitcoin price moves tied to Trump news:

• October 10: Tariff threat announced, Bitcoin drops 8% to $111,000.
• October 17: Reversal statement, Bitcoin rises 2% to $106,000.
• Year-to-date: Bitcoin up 120% despite volatility.

One trader on X noted the “Trade War Trump Put” as a bottom signal, predicting climbs to $140,000-$160,000 without big drops.

This isn’t just noise. Investors like you might see chances here. If trade peace holds, it could fuel a rally. But if things sour, expect more ups and downs.

Bigger Picture for Crypto and Trade

Trade wars affect more than prices. They hit everyday folks through higher costs on goods, from phones to cars. For Bitcoin holders, this could mean a shift to digital assets as real-world money gets shaky.

Global tensions have pushed gold to all-time highs, with prices hitting new peaks this month. Bitcoin, often called digital gold, might follow if uncertainty grows. A Yahoo Finance piece tracked a 2% crypto uptick right after Trump’s words, linking it to eased fears.

The real test comes with Trump’s China trip—success could steady markets, while failure might spark fresh drops.

Think about supply chains. China controls key rare earth metals for tech, vital for blockchain gear. Tariffs could raise costs, slowing crypto growth. Yet, some see this as a push for U.S.-based mining, boosting jobs here.

Crypto’s role in finance keeps evolving. With over $3.7 trillion in market cap, per CoinGecko data from May, it’s no small player. Trump’s moves remind us how politics ties into your wallet.

In the end, Bitcoin’s steady stance amid Trump’s tariff turnaround highlights its growing toughness in a wild world. This could signal a maturing market, less swayed by daily headlines. It offers hope for investors tired of rollercoasters, but also a reminder to stay alert as global talks unfold.