The cryptocurrency sector faces new turmoil following China's unexpected announcement of a 34% customs duty on U.S. imports. This has led to significant market volatility.
How Does China’s Tax Policy Affect Global Trade?
The customs duty announcement has reignited fears of a trade war, negatively influencing global investor sentiment. This move is a direct response to the recent tax hikes on Chinese imports from the U.S.
What Is the Impact on Bitcoin and Other Cryptos?
Bitcoin, which opened at approximately $84,600, dropped nearly $1,600 to around $83,000 according to CoinMarketCap. Other cryptocurrencies like Ethereum, XRP, Solana, and Dogecoin faced losses, leading to sideways trading.
Experts Weigh in on Future Market Prospects
Experts caution that unless diplomatic relations improve, further market fluctuations are likely. Investors are currently shifting towards safer assets such as gold amidst rising uncertainty.
The cryptocurrency market remains under pressure from global economic factors. The current volatility highlights the urgent need for stability in international trade to avert further oscillations.
