Cryptocurrency Market Plunges Amid Insider Trading Allegations Following Trump’s Tariff Threat
A dramatic cryptocurrency crash sparked by Donald Trump’s threat to impose 100% tariffs on Chinese goods has ignited new allegations of insider trading.
Anger is mounting among investors after reports suggested that an anonymous trader may have made up to $200 million (£150 million) by betting against the two largest digital currencies — Bitcoin and Ethereum — shortly before the U.S. president’s announcement.
According to industry reports, the trader opened large short positions roughly 30 minutes before Mr. Trump revealed his tariff plans, a move that sent shockwaves through global markets and erased nearly $400 billion from the value of cryptocurrencies within a single day.
The timing of the trades has raised serious questions over whether the investor had advance knowledge of the White House announcement.
Joshua de Vos, an analyst at crypto data firm CoinDesk, commented:
“The timing and scale of the positions opened on October 10, immediately prior to the market-wide liquidation, does raise suspicion of information asymmetry. While there is no conclusive evidence of insider trading, the wallet activity shows strong, directional conviction.”
Since the announcement, cryptocurrencies have struggled to regain ground. Bitcoin remains down 8.5%, Ethereum has fallen 12.8%, and Dogecoin is down 26.3% since Friday.
This is not the first time Trump’s administration has faced similar accusations. In April, a previous tariff announcement — later dubbed “Liberation Day” — triggered a brief global sell-off before markets rebounded when Mr. Trump abruptly paused the measure. That episode prompted Democratic Senator Elizabeth Warren to write to the Securities and Exchange Commission, urging an investigation into whether insiders had profited from privileged information.
White House officials have consistently denied any wrongdoing.
The controversy comes as global policymakers and finance ministers gather in Washington, D.C., for the International Monetary Fund (IMF) Autumn Summit. Concerns about a potential AI-driven stock market bubble are expected to dominate discussions.
Kristalina Georgieva, IMF managing director, warned ahead of the meetings:
“Valuations are heading toward levels we saw during the bullishness about the internet 25 years ago. If a sharp correction were to occur, tighter financial conditions could drag down world growth, expose vulnerabilities, and make life especially tough for developing countries.”
The Bank of England issued a similar alert last week, questioning whether high-flying tech valuations are sustainable. Those fears have been amplified by investors pulling funds from the world’s largest asset managers amid growing anxiety that their $3 trillion expansion into private credit could unravel.
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned
Like this:
Like Loading…