The recent imposition of retaliatory tariffs by China on U.S. coal and other goods has reignited fears of a prolonged trade war, leading to a decline in Bitcoin's price. The tariffs, which include a 15% duty on U.S. coal and LNG and a 10% tax on crude oil and other goods, have put pressure on risk assets, including cryptocurrencies. This move by China comes in response to U.S. President Donald Trump's new tariffs on Chinese goods, which took effect recently. The uncertainty surrounding the trade tensions has led to a sell-off in Bitcoin, as investors seek safer assets amid the geopolitical turmoil.
The impact of the trade war on Bitcoin is further compounded by the recent shift in Bitcoin ETFs to outflows, as investors pulled out over $234 million from these funds. This marks a significant change from the previous inflow streak, reflecting the market's cautious stance amid the escalating trade tensions. The broader crypto market has also been affected, with over $2 billion in liquidations in the crypto derivatives market, highlighting the volatility and risk aversion among investors. Despite a brief recovery following a temporary pause in tariffs on Canada and Mexico, Bitcoin's price remains under pressure due to the ongoing uncertainty with China.
Bitcoin's price has fallen by 2.61% today, currently trading at $98,816.62, after reaching a high of $101,708.66 earlier in the day.