Trump’s Weekend Effect Returns
U.S.-China relations have once again become the center of global attention. President Trump’s announcement of new tariffs on Chinese goods triggered widespread market panic. Sharp declines in Bitcoin and Ethereum late Friday drove investor anxiety to new heights. Yet, in just two days, market sentiment shifted dramatically. Trump adopted a conciliatory tone, and market confidence rebounded rapidly.
This pattern is familiar to investors. Trump frequently makes major statements after Friday’s market close, causing volatility to erupt first in the always-on crypto markets. By the time traditional financial markets open on Monday, the extreme swings in crypto markets have already been absorbed.
Bitcoin and Ethereum Lead the Rally
On Truth Social, Trump posted: “Don’t worry about China; everything will be fine! President Xi just hit a minor snag. The United States wants to help China, not hurt it.” Investors interpreted this as a signal of easing tensions, sparking a rebound.
As of press time, Bitcoin had climbed back to around $115,000—nearly reaching its recent high—while Ethereum surged past $4,150, rallied more than 20% from Friday’s low. The crypto market’s swift recovery highlights its extreme sensitivity. It also demonstrates its capacity for rapid adjustment.
Crypto Markets: The World’s Leading Sentiment Indicator
With crypto markets running 24/7, any unexpected political event is reflected in these markets first. Leveraged trading drives rapid liquidations. Swift rebounds follow as investor sentiment shifts.
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Summary
Regardless of whether this volatility is a deliberate strategy, Trump’s weekend effect demonstrates that the link between political theater and digital assets is stronger than ever.
