The price of Bitcoin has dropped below the significant $100,000 mark following China's announcement of tariffs on American imports. This development, set amidst escalating trade tensions between the two countries, raises concerns among analysts about a potential increase in volatility.
China Tightens Its Trade Position Against the United States
The Chinese Ministry of Finance has announced new tariffs on American imports. Starting February 10, Beijing will impose tariffs of 15% on coal and liquefied natural gas, and 10% on crude oil, agricultural machinery, and certain vehicles from the United States. This decision comes in response to U.S. measures and includes restrictions on the export of strategic metals, potentially affecting global supply chains.
Bitcoin's Reaction to Chinese Trade Measures
Bitcoin has shown significant volatility since the announcement of Chinese tariffs. The currency fell to $92,800 before bouncing back to $98,400. Underlying tensions between the U.S. and China are weighing on prices, despite temporary relief from the suspension of tariffs for Mexico and Canada.
Analysts Discuss the Impact of Growing Disagreements
Min Jung from Presto Research notes that cryptocurrencies react to geopolitical tensions like traditional stocks, and volatility will persist as long as the situation remains unresolved.
The current situation forces investors to rethink their strategies amid escalating trade disagreements. The arising conditions prompt questions about Bitcoin's status as a safe-haven asset, as it becomes more susceptible to geopolitical risks.
