Bitcoin (BTC), a cryptocurrency, breathed a sigh of relieve yesterday when the US postponed its 25% proposed trade tariffs against Mexico and Canada for a whole month. The US, however, imposed 10% tariffs against China. This prompted Beijing to take retaliatory action. BTC’s price has fallen below $100,000 due to the escalation.
Bitcoin Suffers Amid Trade Wars
BTC’s short-lived rally from $102,000 to $120,000 came after an unstable 24 hours of uncertainty regarding US trade tariffs with Mexico and Canada. The rally came shortly after US President Donald Trump had announced that tariffs would be delayed for 30 days on Mexico and Canada.
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As a result of the US’s tariffs against China, BTC has fallen below $100,000. China’s Ministry of Finance responded by announcing new countermeasures.
China has announced that it will increase its tariffs on coal and natural gas liquefied by 15%, as well as 10% for agricultural equipment, crude oils, and certain cars, starting February 10.
Beijing also accused the US for violating World Trade Organization regulations (WTO), with their one-sided policy on tariffs. China’s Ministry of Commerce has also announced it will tighten its export controls of key raw materials including molybdenum. indium, bismuth and tellurium.
Analysts predict that the cryptocurrency market will be volatile in the near future as trade tensions between China and the US escalate. Well-known crypto strategist Michael van de Poppe shared his outlook:
Bitcoin The market has recovered quickly and currently is acting within its range. It’s normal for corrections to occur after a bounce of this magnitude. I expect new highs will be reached in February. As long as Bitcoin is above $93,000, a new ATH should be possible.
Phoenix, a crypto-trader and investor, suggested BTC might establish a brand new trading range in the midst of escalating trade tensions. Historically, however, a rise in tariffs has been shown to be bad for crypto.
Web3 enthusiast merts.eth pointed BTC fell 65% last year when Trump started a trade conflict with China. The effects were not limited to digital assets, as the S&P 500 also dropped 12% in the weeks following the implementation of tariffs.
BTC: More downsides for BTC?
Concerns are growing about another possible price collapse as Bitcoin struggles to maintain the $100,000 level. Crypto analyst Ali Martinez recently pointed It is important to note that BTC could fall below the $97.190 level if it fails to maintain this support. more pain The top digital asset
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Analyst made a second observation regarding the current state of BTC trading A bearish flag pattern. BTC was trading at $9,961 as of press time. This is up 1% over the last 24 hours.
Images from Unsplash and TradingView.com, charts by X.
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Source: www.newsbtc.com
