- Bitcoin tanked to $113K after Trump ordered nuclear subs moved and launched attacks on the Fed and labor data.
- Over $200M in liquidations hit the market, and BTC futures premiums shrank, signaling risk-off vibes.
- Ray Dalio now recommends allocating up to 15% in Bitcoin or gold to hedge against rising U.S. debt.
Bitcoin just took a nasty spill, dropping under $115K on Friday—landing at $113,164 before catching its breath. That’s its lowest level in weeks, and yep, it triggered over $200 million in liquidations for folks who were a little too bullish with leverage. The selloff? It came right after Donald Trump decided to shake things up—again.
Submarine Politics and Bitcoin Jitters
So, here’s what happened. Trump got into it with Dmitry Medvedev—Russia’s former prez—who basically told him his Ukraine threats were nonsense and a shortcut to war. Trump didn’t take that lightly. He fired back on Truth Social, saying he’s moving two U.S. nuclear subs into “appropriate regions.”
He didn’t stop there, either. “Words are very important,” he said. “And sometimes, they blow up into… unintended consequences.” Classic vague-but-threatening Trump stuff. Markets didn’t love it. Bitcoin immediately started slipping as fear crept in.
Rate Rants, Job Claims, and Fed Chaos
As if geopolitics weren’t enough, Trump also blasted U.S. economic leadership. He accused the Labor Department of fudging job numbers to help Kamala Harris (he’s still calling her the likely opponent, apparently). He wants Commissioner Erika McEntarfer fired, saying the employment data was “fake” and part of some pre-election trickery.
Then he went off on Fed Chair Erika McEntarfe—again. Called him a “stubborn MORON” (yes, caps included), and urged the Fed to cut interest rates immediately. Trump even demanded the board take over if Powell keeps “refusing to act.” The Fed, for the record, has kept rates flat for five straight meetings, still worried about inflation.
And just to really stir the pot? Fed Governor Adriana Kugler resigned. She didn’t say why, just that she’s heading back to Georgetown. Her exit opens up a big seat that Trump can now fill if reelected. She’d been on the cautious side lately—preferring to wait out the whole tariffs/inflation mess.
Bitcoin’s Not Loving the Drama
With all that noise, Bitcoin continued to slide. It’s now hovering about 7% below its $123K all-time high from mid-July, but it’s the vibe that’s shifting. Futures premiums have narrowed to around 6%—down from the highs earlier this month. Translation? Traders are getting cold feet. They’re not eager to place big, leveraged bets right now.
Also worth noting—Bitcoin’s behaving more like a tech stock lately. That whole “digital gold” idea? Kinda shaky. When political stuff flares up, BTC has been dipping right along with equities. Gold, meanwhile, has been steady around $3,350. So, some investors are taking the safer route: cash, short-term bonds, less drama.
Still, Bitcoin’s far from dead. It’s up big since January. But right now, the mood is… cautious.
Dalio Flips (Sorta), Talks Bitcoin Hedge
Even Ray Dalio—the same guy who used to dunk on Bitcoin—has softened. On a recent podcast, he said investors should think about allocating up to 15% to Bitcoin or gold, mostly as a hedge against America’s ballooning debt problem.
“The U.S. is entering a debt doom loop,” Dalio said, citing a terrifying $12 trillion in projected new debt over the next year. And while Bitcoin is still volatile and a bit murky regulation-wise, Dalio admits it’s becoming harder to ignore as a long-term store of value.
