Escalating trade tensions between the U.S. and China have significantly impacted the cryptocurrency market, particularly Bitcoin, which is a key focus of the 2x Bitcoin Strategy ETF (BITX). On February 4, 2025, China imposed retaliatory tariffs on U.S. coal, which has contributed to a broader market unease, affecting investor confidence in riskier assets like Bitcoin. This geopolitical development has led to a decline in Bitcoin's price, as investors seek safer havens amidst the uncertainty. The situation is further compounded by a net outflow of $235 million from Bitcoin-focused ETFs, indicating a cautious stance among institutional investors.
Additionally, the ongoing U.S.-China trade war has rattled markets, with Bitcoin futures on the CME Group's derivatives exchange experiencing a 4% drop in open interest. This suggests a more conservative approach by traders, reflecting the heightened geopolitical and regulatory challenges facing digital assets. Despite President Donald Trump's pro-crypto stance, the market remains volatile, with Bitcoin trading at $98,517 as of 8:10 a.m. in London, approximately 10% below its record high. The uncertainty surrounding these developments continues to weigh heavily on Bitcoin's performance.
The 2x Bitcoin Strategy ETF (BITX) is currently priced at $57.45, marking a 2.13% decrease from its previous close.