Trump’s Colombia Warning Sparks Market Jitters as Crypto Assets Fluctuate
Geopolitical tensions reached a boiling point as former U.S. President Donald Trump threatened military action against Colombia following Venezuela's regime change. The remarks triggered immediate volatility across risk assets, with traders noting unusual activity in Latin America-linked crypto projects.
Bitcoin (BTC) and ethereum (ETH) saw 2.3% swings within the hour as Trump accused Colombian President Gustavo Petro of enabling narcotics trade. 'They're flooding our cities with poison,' Trump declared, suggesting potential naval blockades that could disrupt regional commerce.
The crypto market's reaction was most pronounced in Solana (SOL) and Polygon (MATIC), which fell 4.7% before paring losses. Stablecoins like Tether (USDT) and Dai (DAI) saw increased transfers between Binance and Bitget as traders sought shelter.
Colombia's Petro fired back: 'We won't be bullied by cocaine addicts who can't handle their own addictions.' The verbal sparring comes amid fragile liquidity conditions, with Bitcoin's dominance index climbing to 42% as altcoins underperformed.