Question #117 ·
How have US China trade tensions and geopolitical events impacted Bitcoin price volatility?
- Tensions led to a steady Bitcoin rally above $130,000
- Tensions triggered rapid sell-offs and a $19 billion liquidation event in mid-October Right answer
- Trade disputes had no impact and Bitcoin stayed flat in October
Why is this the correct answer?
This is correct because escalating U.S.-China trade disputes and geopolitical events shook confidence in risk assets. As a result, traders rushed to sell, driving one of the largest liquidation cascades in crypto history that wiped out over $19 billion in value. For beginners, this shows how external political issues can quickly influence market sentiment and cause volatile price movements.