The recent imposition of retaliatory tariffs by China on U.S. goods has sent ripples through the financial markets, including cryptocurrencies. Bitcoin, which had shown signs of recovery following a temporary pause in U.S. tariffs on Canada and Mexico, faced renewed selling pressure as China announced a 15% duty on U.S. coal and LNG, along with a 10% tax on crude oil and other goods. This move has reignited fears of a prolonged trade war, leading to a decline in Bitcoin's price as investors seek safer assets. "The digital assets market was already on a weak footing," noted Jeff Dorman of Arca Investment, highlighting the market's vulnerability to such geopolitical tensions.
The broader market impact of China's tariffs has been significant, with Nasdaq futures also experiencing a downturn and the dollar drawing safe haven bids. The uncertainty surrounding the trade war has overshadowed recent positive developments, such as the SEC's approval of Bitcoin and Ethereum ETFs, which had initially buoyed investor sentiment. As the situation unfolds, market participants remain cautious, wary of further escalations that could exacerbate the current volatility.
Bitcoin's price has dropped by 2.07% today, currently trading at $99,373.66, after reaching a high of $101,708.66 earlier in the day.