The shadow of China-US trade has resurfaced! Trump's remarks caused Bitcoin to plunge to $108,000, is the big dump in gold accelerating the rotation of funds?

U.S. President Donald Trump expressed doubts about meeting with Chinese leaders, triggering a sharp market fluctuation, with Bitcoin price plummeting sharply in a short period, pulling back most of the intraday gains recorded. This statement comes as Bitcoin (BTC) retraces after soaring from an intraday low of $108,000 to $114,000, once again testing the key level of $110,000. It is worth noting that this Bitcoin rebound coincides with gold hitting its largest single-day drop since 2013, intensifying market speculation about funds rotating from precious metals to Bitcoin.

Trump has doubts about the “Xi-Trump meeting”, and the shadow of the trade war suppresses the market

U.S. President Donald Trump stated during a luncheon at the Rose Garden Club that his meeting with Chinese leaders “may not take place,” although he expressed hope for reaching “a good deal” with China.

· Uncertainty triggers sell-off: Previously, Trump confirmed that he would meet with Chinese leaders at the APEC summit in South Korea on October 31. However, his latest remarks suggest that the meeting is far from certain, which adds significant uncertainty to the key discussions aimed at reaching a trade agreement.

· Tariff threats resurface: Just the day before, Trump threatened that if a trade agreement is not reached by the deadline of November 1, he may impose a 155% tariff on China, and the previously announced 100% tariff will also take effect on November 1. The uncertainty of trade negotiations directly triggered a sell-off of Bitcoin, with prices sharply pulling back from around $113,000.

Historic Plunge of Precious Metals: Speculation on Funds Rotating to Bitcoin

The sharp fall in Bitcoin prices occurred against a critical market backdrop: the precious metals market experienced a historic pullback.

· Gold and silver collapse: Gold and silver continue to decline from record highs. Gold once fell 2.9% to $4,004.26 per ounce, recording its largest single-day drop of 6.3% in over a decade on Tuesday. Silver also once fell more than 2% to $47.6 per ounce.

· Profit-taking triggered: The sharp decline in precious metal prices has highlighted a wave of profit-taking after this year's rapid rise. Analysts believe that traders are strongly motivated to take profits at high prices, and the recent uptrend may have entered a bubble zone.

· BTC-Gold rotation narrative: Before this crash, gold had surged to a historical high of over $4,300. Bitcoin's rebound that day (from $108,000 to $114,000) sparked speculation that investors are moving funds from precious metals to Bitcoin. This “Gold sell-off = Bitcoin buy-in” narrative has gained wide attention in the crypto community.

Market Sentiment and Technical Outlook: Correction Rather Than Trend Termination

Despite facing macroeconomic and political uncertainties, the market's long-term confidence in risk assets does not seem to have been shattered.

· Stock market sentiment is stable: Compared to the volatility of precious metals, the stock market is relatively stable, with investors still focusing on robust U.S. corporate earnings. Even among global macro hedge funds, stock risk exposure is at its highest level in over a year.

· Healthy correction: Analysts believe that the current short-term pullback or consolidation in the stock market is “healthy and necessary.” Similarly, for Bitcoin, the current sell-off may be more of a panic correction driven by news events rather than the end of a bull market.

· The long-term driving forces remain unchanged: Despite the pullback, analysts emphasize that the long-term drivers supporting precious metal prices are still in place, including central bank gold purchasing demand, declining yields, and expectations for further monetary easing. This perspective is equally applicable to Bitcoin, indicating that the current “buy the dip” approach remains sustainable.

Conclusion

Trump's latest comments on US-China trade have once again proven the significant impact of macro-political events on the short-term trend of Bitcoin prices. However, the resilience shown by Bitcoin during the historic plunge of gold and its attempts for a quick rebound further strengthen its narrative as a potential “digital gold” and a global safe-haven asset. Although the market may continue to fluctuate in the short term due to trade uncertainties and profit-taking, the current pullback is likely to provide a good opportunity for investors who missed out on previous gains to “get on board” or increase their holdings.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions with caution.