- China imposes 10-15% retaliatory tariffs on U.S. goods, affecting Bitcoin prices.
- Bitcoin dips below $98,000 in response to escalating U.S.-China trade tensions.
- Cryptocurrency markets face volatility due to Trump’s trade policies.
- Beijing adds U.S. companies to its blacklist; starts antitrust probe into Google.
China Strikes Back: Tariffs and Bitcoin’s Dip
China has levied new tariffs on U.S. imports ranging from 10-15%. This action comes in direct response to President Donald Trump’s recent tariff impositions on Chinese goods, signaling another escalation in the ongoing trade war. The immediate aftermath? Bitcoin, often seen as a barometer for risk sentiment in markets, plummeted below $98,000.
Why does a trade war between two economic giants affect Bitcoin so significantly? Well, when global trade tensions rise, investors often seek safe havens, and while Bitcoin is sometimes considered one, the reality is that it’s also viewed as a high-risk asset. The uncertainty and potential for inflation or economic downturns can drive investors away from speculative investments like cryptocurrencies.
After a brief recovery from Monday’s market sell-off, Bitcoin faced another downturn as China announced its retaliatory measures. This news led Bitcoin to dip to around $98,500, as reported by various sources, including CoinDesk and The Block.
According to Blockonomi, Bitcoin’s price saw a 2.5% drop post-announcement, with trading volumes surging across crypto exchanges, indicative of heightened market activity and investor response to the news.
It wasn’t just Bitcoin feeling the heat. Other cryptocurrencies experienced sharper declines, with Dogecoin dropping by 5.8% and XRP by 5.1%.
Beyond cryptocurrencies, U.S. stock futures also took a hit, with the NASDAQ 100 futures dropping by 1.7% during Asian trading hours, reflecting the global market’s reaction to these developments.
Beijing’s Broader Strategy
China didn’t stop at tariffs. In a strategic move, Beijing added U.S. companies PVH Corp and Illumina to its “unreliable entities” list, which could restrict their operations in China. Additionally, an antitrust investigation into Google was initiated, which adds another layer of complexity to the U.S.-China economic relationship.
These actions are part of a broader strategy by China to push back against U.S. policies, potentially affecting tech and trade sectors beyond immediate financial markets. The question arises, how long will these tensions persist?
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
