China's Bitcoin Theft Accusation Fuels Crypto Market Instability

Recent developments have sent shockwaves through the cryptocurrency market, notably impacting Bitcoin and XRP. Both assets faced declines, attributed to macroeconomic factors such as sluggish job growth and heightened trade tensions.

As over $400 million in liquidations hit the market, major cryptocurrencies recorded losses of 2-5%. In a striking turn, China accused the U.S. of Bitcoin theft, amplifying market anxieties.

However, optimism briefly surged following reports of a potential U.S.-China trade agreement, which could alleviate tariffs and stabilize export controls. Despite this, analysts caution that the current correction for XRP may not be over, predicting further declines before any rebound.

Additionally, warnings from seasoned analysts suggest that Bitcoin could face a significant correction in the coming weeks, driven by liquidity issues. As external pressures mount, the crypto landscape remains volatile, highlighting the importance of monitoring both domestic and international economic signals.