The US president warns that he will massively increase tariffs on China

The price of Bitcoin (BTC) fell sharply following new statements by US President Donald Trump regarding China.

In a message published this Friday, the president warned that his administration is considering a "massive increase in tariffs" on Chinese products. The warning rekindled fears of a trade war between the world's two largest economies.

Trump claimed that China has become "very hostile" and that he sent letters to other countries announcing controls on the export of rare earths, key materials in technological production. He said such a move could "congest the markets" and that his administration would respond with financial action.

"I never thought it would come to this, but perhaps the time has come," he wrote. He also asserted that there is "no reason" to meet with President Xi Jinping, canceling the meeting scheduled for the APEC summit in South Korea.

Following the message, Bitcoin fell from $122,000 to $104,000 in two hours. However, it saw rapid sales absorption, and at the time of writing,  the digital currency trading again above $110,000.

The move was followed by other assets and stocks, such as the Nasdaq index, which fell more than 600 points and remains at 24,490.

Overall, the market is interpreting the statements as a possible start of prolonged tensions between the United States and China, leading investors to reduce their exposure to assets considered "risky," including BTC, cryptocurrencies, and technology stocks.