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Bitcoin Hovers Around $100K as U.S.-China Trade Tensions Escalate

Bitcoin Hovers Around $100K as U.S.-China Trade Tensions Escalate

Bitcoin is hovering near $99,300 as tensions escalate following China’s announcement of new tariffs on select U.S. imports.

The move, set to take effect on February 10, includes a 15% tariff on coal and liquefied natural gas, along with a 10% tariff on crude oil, agricultural machinery, and certain vehicles.

This action from China comes as a response to the U.S. imposition of additional tariffs on Chinese goods, which took effect on Tuesday. China’s Ministry of Finance condemned the U.S. decision, stating that it violates World Trade Organization rules. Furthermore, China has introduced tighter export controls on strategic metals, citing national security concerns.

As for Bitcoin, its price fluctuated around $99,300 after a dip to $98,500 earlier in the day, recovering from a low of $92,800 during a broader market downturn. The cryptocurrency had seen a sharp spike above $100,000 the previous Monday, following a brief easing of trade tensions between the U.S. and Mexico, as announced by President Trump.


READ MORE: Trump Pushes for Sovereign Wealth Fund, Raising Bitcoin Speculation


Although Bitcoin is often viewed as a potential hedge against traditional assets like gold, many investors still consider it a risk asset. According to Min Jung, a research analyst at Presto Research, China’s tariff actions could put pressure on risk assets, including cryptocurrencies, in the same way equity markets are affected. However, Jung noted that the initial market reaction might have been overdone, and the longer-term impact will depend on whether this marks the beginning of a broader trade conflict or remains a singular event.

Experts like Justin d’Anethan of Liquifi suggest the real escalation in trade tensions is happening with China, signaling potential for further volatility in markets, including crypto. Nick Ruck of LVRG Research cautioned that a full-scale trade war could exacerbate the downturn in cryptocurrency prices unless diplomatic negotiations lead to a resolution, as seen with Canada and Mexico.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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