According to Fox News, China criticized Pete Hegseth for promoting a 'Cold War mentality' after he labeled the nation as a global threat, citing concerns over national security and international stability. This public dispute increases geopolitical tensions, which historically lead to higher volatility in the cryptocurrency market as investors seek alternative assets amid uncertainty (source: Fox News, June 2, 2025). Traders should monitor Bitcoin and stablecoin flows, as heightened US-China friction often results in risk-off sentiment and increased crypto trading volumes.