China Tariffs Fuel Bitcoin Drop – When Will Crypto Market Bounce Back?
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The US-China trade tension has escalated to a new peak, when Beijing has strongly retaliated against Washington’s decision to impose a 10% tariff on Chinese goods with counter-tariffs on US imports. Notably, even though Bitcoin earlier benefited from US President Donald Trump’s decision to hold the proceedings aimed to impose tariffs on Canada and Mexico, the Asian superpower’s retaliation against the global economic leader has disrupted the BTC market severely. Today, the Bitcoin market has declined by at least 2.66%. Let’s dive in for more details!
China’s Retaliation Sparks Bitcoin Market Volatility
It was on February 1 that Donald Trump announced his plan to impose tariffs on Canada, Mexico and China. At the start of that day, the BTC price was $102,398.67. Between February 1 and 2, the market slipped by at least 4.64%.
As soon as rumours regarding Trump’s plan to halt his tariff plan against Canada and Mexico surfaced, buyers started to reenter the Bitcoin market, pushing the price upwards. On February 3, BTC saw an impressive single-day growth of 3.75%, pushing the price above the range of $100K.
Trump’s approval of an executive order to create the first sovereign wealth fund also influenced buyers positively.
However, the bullish momentum of Bitcoin has met a tough hurdle, when China has retaliated against the US’ decision to impose a 10% tariff on Chinese goods with counter-tariffs on US goods.
Today alone, Bitcoin has dropped by over 2.66%.
Experts Predict Ongoing Volatility and a New Trading Range in the BTC Market
Acclaimed crypto market experts, like Michael Van de Poppe, opined that volatility would continue in the Bitcoin market.
Meanwhile, experienced cryptocurrency traders, like Phoenix, stated that Bitcoin would form a new short-term range due to the current volatile market condition.
Notably, Onchain analyst Axel Adler Jr. noted that Bitcoin’s funding rates turned negative, a bullish signal.
White House to Announce New Digital Asset Policy Today
Today, the artificial intelligence and cryptocurrency czar of Donald Trump, David Sacks, is scheduled to organise a press conference to explain the digital asset strategy of the new US administration. The conference is expected to be hosted by Sacks, along with Senate Banking Committee Chairman Tim Scott, Senate Agriculture Committee Chairman John Boozman, House Financial Services Committee Chairman French Hill and House Agriculture Committee Chairman G T Thompson. During the event, the representatives are likely to explain how the US administration can make the country a global leader in the crypto sector.
