Crypto chaos erupts as global trade tensions trigger market meltdown

Bitcoin Bulls Defend $80,000 Support as "World War 3 of Trade Wars" Crushes US Stocks

The ongoing trade tensions between the United States and China have sent shockwaves through global financial markets, with US stocks experiencing their worst week since the 2008 financial crisis. Amidst the chaos, Bitcoin (BTC) bulls are defending the cryptocurrency's $80,000 support level, citing the asset's reputation as a safe-haven investment during times of economic uncertainty.

The Dow Jones Industrial Average plummeted 3.6% last week, its worst performance since October 2008, as the US-China trade war escalated. The S&P 500 and Nasdaq Composite also suffered significant losses, with the latter experiencing its worst week since 2001.

Meanwhile, Bitcoin has bucked the trend, rising 1.5% to $79,500, according to CoinMarketCap. The cryptocurrency's resilience has sparked a debate among traders and analysts, with some arguing that its price action is a reflection of its growing appeal as a hedge against market volatility.

"We've seen this before," said Michael Novogratz, CEO of Galaxy Digital. "When the world is going crazy, people turn to Bitcoin. It's a safe-haven asset, and that's what we're seeing right now."

The $80,000 support level has been a key area of focus for Bitcoin traders, with some arguing that a breakdown below this level could signal a deeper correction in the market. However, others believe that the cryptocurrency's fundamental strength, including its limited supply and growing adoption, will ultimately prevail.

"This is just another example of the 'World War 3 of trade wars' crushing US stocks," said Timothy Draper, CEO of Draper Fisher Jurvetson. "Bitcoin is a store of value, and it's going to continue to do well as people seek a safe-haven asset during these tumultuous times."