"Over the weekend, after President Donald Trump unexpectedly announced a 100% tariff on all imports from China, effective November 1, 2025 (or earlier if Beijing continues its export restrictions on rare earth materials), global risk assets immediately tumbled. Bitcoin reacted most sharply, plunging nearly 17%, from around $122,000 to approximately $107,500 within a few hours, before quickly rebounding to around $115,000 by early Monday trading."
"This violent move not only stunned investors but also illustrated how Bitcoin-an asset that has become increasingly institutionalized-still retains the reflexive behaviour of a free market instrument. It serves as an instant mirror of global risk sentiment, where every shift in policy expectations is priced in directly and without mediation. Federal debt has surpassed $37 trillion-a symbolic milestone of an era marked by chronic fiscal deficits."
An unexpected 100% tariff on all imports from China, effective November 1, 2025 (or earlier if Beijing continues export restrictions on rare earth materials), caused global risk assets to tumble. Bitcoin plunged nearly 17%, from about $122,000 to $107,500 within hours, then rebounded to roughly $115,000. Bitcoin remains a reflexive free-market instrument and an immediate mirror of global risk sentiment, with policy shifts priced directly. The Federal Reserve has begun a rate-cutting cycle while U.S. real yields remain high and federal debt exceeds $37 trillion. Elevated real yields and heavy bond issuance keep risk assets under pressure. Growing instability and dollar weakness make Bitcoin more attractive to investors seeking independence from government-controlled money. The structure of Bitcoin demand has shifted toward institutional flows, aided by spot Bitcoin ETFs.
Read at London Business News | Londonlovesbusiness.com
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