The price of bitcoin (BTC) is experiencing days of turbulence. Last Monday, BTC marked new all-time highs above $126,000. On Friday of that same week bitcoin reached up to $102,000 on some exchanges. And, at the time of this publication, it is trading around $114,000.
The following graph, provided by TradingView, shows the behavior of BTC in the last 7 days.
Likewise, several cryptocurrencies are “turning green” and recovering after the crash. Ether (ETH), cryptocurrency of the Ethereum network, is back above $4,000, with a recovery of 7.2% in the last 24 hours.
Within the top 100 by market capitalization, dash (DASH), mantle (MNT) and bittensor (TAO) stand out especially, with increases of 35%, 26% and 20% in the last day.
According to analysts at The Kobeissi Letter, “investors are taking notice of some important news coming out of China.” They detail that “it is possible that the entire drop in tariffs on October 10 was simply a big misunderstanding between Trump and Xi” (presidents of the United States and China, respectively) and explain:
The news about China’s rare earth export controls broke on October 9 at 8:30 a.m. ET, 26 hours BEFORE Trump posted about it. This was an event that didn’t make the news UNTIL President Trump posted about it a day later. Last night, China released a statement clarifying its “export controls” on rare earths. In its response, China said the new controls are NOT an outright ban on exports and that applications that “comply with regulations” will be approved. Amid the market decline on Friday, our view was that Trump’s 100% tariff announcement was a bargaining chip.
The Kobeissi Letter, financial newsletter.
Therefore, if true this thesis, the chances of the United States’ 100% tariff on Chinese imports coming into force are very low.
As reported by CriptoNoticias, fears that a new chapter in the tariff war would begin caused the prices of BTC and cryptocurrencies to plummet, giving purchase opportunities at low prices to those who knew and were able to take advantage of them.