The cryptocurrency market continues to experience sharp declines as escalating tensions between the United States and China rattle global investors. Last week, China imposed strict new export controls on rare earth elements, which are crucial for manufacturing high-tech goods. The U.S. responded swiftly, with President Trump threatening to implement 100% tariffs on all Chinese imports and canceling an anticipated meeting with Chinese President Xi Jinping.

These tit-for-tat measures triggered a steep decline in global markets, with cryptocurrencies hit especially hard. Bitcoin slid to $100,000, marking an 11% daily drop, while Ethereum, Binance Coin, Solana, and other major cryptocurrencies also saw double-digit percentage losses. The total market value of cryptocurrencies fell by roughly $400 billion in less than 24 hours.

Rumors of insider trading emerged when an anonymous investor reportedly made $200 million by shorting Bitcoin and Ethereum just minutes before Trump’s tariff announcement. This well-timed bet sparked widespread suspicion among traders, although no definitive proof has surfaced.

By Sunday, some of the losses in the crypto sector had been recovered, as President Trump posted more conciliatory remarks on social media, suggesting the situation with China could improve. This prompted speculators to buy the dip, anticipating recovery as past threats have often been followed by softer rhetoric.

Despite the recent volatility, negotiations between the U.S. and China remain ongoing. Both sides have made public statements defending their positions, with China promising to take any actions necessary to protect its economic interests and the U.S. signaling that further escalation is not inevitable. For now, uncertainty over the future of U.S.-China trade relations, combined with heightened sensitivity to political moves, continues to fuel volatility across both traditional and crypto markets.