Categories: Bitcoin Business

Newsflash: Bitcoin Price Craters Below $11,000 as Trump Stuns Market

Click here to view original web page at
The bitcoin price careened below $11,000 after the Trump administration stunned the market by delaying new tariffs on China. | Source: REUTERS/Leah Millis/Shutterstock; Edited by CCN

The bitcoin price slid below the $11,000 mark for the first time in more than a week on Tuesday, as the flagship cryptocurrency's burgeoning inverse correlation with the S&P 500 came back to bite investors.

Bitcoin Price Careens Below $11,000

Bitcoin had entered the day trading sideways in the low $11,000s, where it had more or less languished since the Saturday sell-off that followed BTC's brief foray above $12,000 last week.

The dam broke around 10 am ET, and the bitcoin price cascaded below $11,000 to breach its lowest level since August 4.

The bitcoin price slid below $11,000 for the first time in more than a week. | Source: TradingView

As of 10:35 am ET, BTC/USD had fallen as low as $10,863 on Bitstamp. The leading cryptocurrency last traded at $10,909 for a 24-hour decline of 3.45%.

Notably, the bitcoin price's steep decline was accompanied by a phenomenal rally on Wall Street. The Dow Jones Industrial Average surged 500 points (nearly 2%), the S&P 500 rose 1.84%, and the Nasdaq cleared the 8,000 level following a 2.32% bounce. The CBOE VIX, which measures implied market volatility, fell 15%.

Trump Admin Delays New China Tariffs, S&P 500 Surges

That incredible divergence shouldn't be surprising.

As CCN reported, bitcoin has developed an inverse correlation with the S&P 500. When the stock market bellwether falls, bitcoin rises - and vice versa.

Crypto investors have cheered that inverse correlation as trade war volatility has sent major stock indices into a tailspin, but it was much less welcome this morning. As demonstrated in the chart below, the S&P 500 spiked nearly 1.5% as the bitcoin price endured a loss of equivalent magnitude.

The bitcoin price and S&P 500 diverged after the Trump administration delayed new tariffs on China. | Source: TradingView

The trigger for both moves was the Trump administration's stunning revelation that it would delay new tariffs on Chinese specific imports until December 15 and exempt other items from the looming tariff imposition altogether.

"Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent," the US Trade Representative's office wrote in a statement.

President Trump had previously announced that 10% tariffs on $300 billion worth of Chinese goods would kick in on September 1, and analysts warned that the White House might hike those tariffs to 25% in the coming months.

His announcement, which came via tweet, thrust the stock market toward a vicious sell-off - and the bitcoin price toward a spectacular rally - in the days that followed.

Click here for a real-time bitcoin price chart.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Luongo: Trump’s Not A 4-D Chess-Player, He’s A Very Simple Creature

Authored by Tom Luongo, Friday night used to be the ‘best night on television.’ But today Friday afternoon is becoming… Read More

5 hours ago

Overstock Still Focusing on Crypto Despite Embattled CEO’s Departure

Overstock was one of the first major companies that expressed extreme interest in utilizing and adopting crypto – an interest… Read More

5 hours ago

Symmetrical Triangle Pattern May Bolster Bitcoin Bulls

Over the past couple of days Bitcoin has found itself caught within a relatively tight trading range and has continued… Read More

5 hours ago

Overstock’s Patrick Byrne: the rise and fall of a blockchain pioneer

Patrick Byrne this week resigned as CEO of US online retailer Overstock. The move closely followed the announcement of disappointing… Read More

5 hours ago

Ethereum & Stellar’s Lumen Tech Analysis –26/08/19

It’s a bullish start to the day for the majors. Holding above key levels would support another breakout later in… Read More

5 hours ago

New tool for OTC trade is based on Ethereum smart contracts

Source: Wikimedia The decentralized platform AirSwap, a trade network driven by the Ethereum platform, launched a tool, called AirSwap Trader,… Read More

5 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More