Bitcoin (BTC) price dropped below $118k on Friday following the fear induced by the escalating tariff trade war between the United States and China. The flagship coin dropped nearly 3% to trade at about $117,672 at press time.
As Coinpedia reported, the crypto market recorded heavy liquidation of nearly $1 billion after President Donald Trump threatened to slap China with fresh massive tariffs.
According to Adam Kobeissi, founder of The Kobeissi Letter, it is safe to assume a TACO trade will be fruitful in the near future. A TACO trade, meaning ‘Trump Always Chickens Out’, was confirmed earlier this year after President Trump threatened big tariffs, markets dumped significantly, negotiations happened, and markets rebounded.
“President Trump’s post about China claiming “massive” tariff increases are coming is a bargaining chip. We believe trade talks between the US and China will resume after a little turbulence,” Kobeissi noted.
The crypto market is expecting the Fed to continue with its rate cuts before the end of this year to stimulate economic growth. Furthermore, the U.S. dollar has been losing value year-to-date, down over 10%, amid struggling labor markets and high inflation.
As such, Kobeissi highlighted that asset owners will continue to win in the long term. Already, the Gold price has been in a parabolic rally since mid-August this year, potentially hinting at an imminent rally for Bitcoin.
According to market analyst Benjamin Cowen capital rotation to Bitcoin from the altcoin market was accelerated by Friday’s high-impact news. Meanwhile, Cowen highlighted that the wider crypto market will likely experience a parabolic rally before the end of this year.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
After a prolonged delay in the passage of the Clarity Act, the White House is…
The Federal Reserve issued its first FOMC statement for 2026 today, January 28. The Fed’s…
During the latest pullback, the Chainlink price broke down below the pivotal support zone, while…
Expert Versan Aljarrah says XRP is one of the most misunderstood financial instruments in today’s…
Following a recovery from lows near $20, the Hyperliquid price has received significant attention, which…
Macro investor Raoul Pal says Bitcoin’s recent underperformance compared to gold is not unusual and…
