Bitcoin News Today: Trump's Crypto Pardons Spark Market Optimism, Legal Risks Clash

Trump's Tariff Moves and Crypto Gambles: A Trader's Dual Bets Amid Market Turbulence

U.S. President Donald Trump's escalating trade tensions with China have sent shockwaves through global markets, with cryptocurrency prices and high-stakes bets from a prominent trader drawing particular attention. The administration's announcement of a 155% tariff on Chinese imports, set to take effect on November 1, triggered a sharp drop in Bitcoin's price, which fell from $114,000 to $110,000 within hours. Meanwhile, a trader dubbed the "Trump insider" has expanded their Bitcoin short position, adding $22 million in exposure to a total of $99.6 million, leveraging 10x leverage despite a current floating loss of $1.1 million.

The trader's strategy appears to extend beyond Bitcoin. Following Trump's surprise pardon of Binance founder Changpeng "CZ" Zhao, the crypto market erupted in speculation about CZ's potential return to the exchange. Polymarket data shows a surge in bets predicting CZ's reinstatement, with odds rising to 82% immediately after the pardon announcement, though cooling to 36% by the following evening. The trader, who previously capitalized on Trump's tariff policies, has now reportedly shifted focus to CZ's future, aligning with broader market optimism about Trump's pro-crypto stance.

Trump's pardon of CZ has sparked intense debate. While the White House framed the move as a correction of "Biden's war on crypto," critics argue it risks undermining accountability. Legal experts emphasize that a pardon does not erase guilt, leaving Binance exposed to civil lawsuits and regulatory scrutiny, as noted by WalletInvestor. The decision also reignited discussions about whether former FTX CEO Sam Bankman-Fried might receive similar treatment. Polymarket odds for SBF's pardon jumped from 5.6% to 12% following CZ's pardon, according to Cointelegraph, though many industry figures, including crypto lawyer Jake Chervinsky, have dismissed the likelihood.

The trader's activities have drawn accusations of insider trading. Famed crypto investigator Coffeezilla alleged insider trading after reporting that a wallet linked to the "Trump insider" placed large pre-announced bets on CZ's pardon, netting a $56,696 profit. While unproven, the claims highlight the blurred lines between market foresight and unethical advantage.

As Trump's tariff policies and crypto-related moves intertwine, the economic and geopolitical stakes are rising. The administration has signaled a willingness to distribute some tariff revenue to American taxpayers, though the $200 billion in reported revenue falls short of Trump's claimed $1.5 trillion. Simultaneously, trade negotiations with South Korea and Japan show signs of progress, with a potential "fair deal" on tariffs and investment expected ahead of the APEC summit, reflecting a possible breakthrough in US-Korea tariff talks.

The broader implications for crypto markets remain uncertain. While Trump's pardons and tariff rhetoric have fueled short-term optimism, analysts warn of lingering volatility. Regulatory shifts, geopolitical tensions, and unresolved legal battles could continue to shape the sector's trajectory. For now, the "Trump insider" and other market players remain at the center of a high-stakes game where politics and crypto collide.

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