Bitcoin Sharp Drop Tied to Trump Trade Comments

Bitcoin traders endured a volatile weekend after data platform Santiment tied the market’s sudden drop to new tensions between the United States and China. The crash unfolded within hours of a post from Donald Trump, who warned of higher tariffs on Chinese goods and called Beijing “very hostile.”

Good to Know

• Bitcoin fell from $124,000 to $104,100 before bouncing back above $113,000.
• Over $19 billion in crypto positions were liquidated, mostly from long trades.
• Altcoins saw deeper losses, with Litecoin down 51% and Dogecoin down 39%.

Santiment, a blockchain analytics firm that tracks on-chain activity, trader sentiment, and social media trends, reported that Trump’s statement triggered an immediate spike in trading volume and panic liquidations. The company aggregates data from exchanges, wallets, and online discussions to assess crowd behavior in crypto markets.

According to Santiment, the selloff intensified roughly six hours after Trump’s message. More than 1.6 million traders were affected, with around $16.6 billion in long positions liquidated compared to $2.4 billion in short positions. The sudden unwinding of leveraged bets hit Bitcoin hardest initially, but smaller altcoins suffered the steepest percentage losses.

Litecoin plunged more than 50%, while Dogecoin fell 39%, respectively. Analysts noted that thinner liquidity in altcoin markets made them especially vulnerable once forced liquidations began.

The market chaos unfolded over less than a day. Discussions across crypto forums and social media quickly shifted from optimism to caution. For the first time in October, Santiment observed that words like “lower” and “below” were mentioned more often than “higher” or “above.” The tone reversal showed how quickly traders turned defensive after months of steady bullish sentiment.

By Sunday, Bitcoin traded just below $115,000 — down about 6% for the week but 4% up in the past 24 hours according to CoinMarketCap data. The rebound suggested that short-term panic may have eased, though traders remain alert to geopolitical developments.

Santiment pointed out that the relationship between Trump and Chinese President Xi Jinping will likely shape crypto market behavior in the near term. If diplomatic talks improve, investor confidence could return. However, any sign of escalation may push traders to predict another correction, possibly below $100,000.

Meanwhile, gold rallied past $4,000 per ounce as traders shifted toward tangible safe-haven assets amid fears of currency instability. Bitcoin, often described as a hedge against inflation, traded instead like a high-risk investment — reacting sharply to global uncertainty rather than absorbing it