As China unveils retaliatory tariffs on selected U.S. goods, Bitcoin flutters around the $99,300 mark. On February 4, 2025, China’s finance ministry revealed that from February 10, an extra 15% tariff will be levied on coal and liquefied natural gas, and an extra 10% on crude oil, agricultural machinery, and specific vehicles.
The declaration of these tariffs by China is a response to the additional tariffs imposed by the U.S. on Chinese goods that came into effect today. In a translated statement, the Chinese ministry stated, “The unilateral imposition of tariffs by the U.S. gravely infringes upon the rules of the World Trade Organization.”
In the meantime, on Tuesday, the Ministry of Commerce in China declared that it will tighten export controls on goods containing tungsten, tellurium, bismuth, molybdenum, and indium, citing the necessity to protect national interests and security.
Currently, Bitcoin is trading at approximately $99,300, having recovered from a dip to around $98,500 earlier today and from $92,800 on Monday amidst a wider sell-off. After U.S. President Donald Trump announced a temporary halt on tariff threats between the U.S. and Mexico, Bitcoin saw a sharp rebound to over $100,000 on Monday.
Presto Research’s research analyst, Min Jung, told The Block, “Even though Bitcoin is often juxtaposed with gold as a digital alternative, it is still predominantly viewed as a risk asset by many investors. Therefore, the 10% retaliatory tariff by China on the U.S. is expected to exert pressure on risk assets, including cryptocurrencies, much like equities.”
“However, the initial market reaction might have been an overreaction, as evidenced by the V-shaped recovery preceding the announcement,” Jung added. “The long-term effects will hinge on whether this signifies the start of a widespread trade escalation or remains an isolated incident. Regardless, we anticipate heightened volatility as tariff-related news continues to influence market sentiment.”
Justin d’Anethan, Liquifi’s head of sales, expressed that while the initial market unease was linked to Trump’s tariffs on Mexico and Canada, “it’s becoming apparent that those were just the preliminary rounds — the real escalation is occurring with China, and potentially Europe next.”
Nick Ruck, director of LVRG Research, pointed out that a full-blown trade war could further extend the sell-off of crypto assets unless the US can negotiate a halt or delay similar to those with Canada and Mexico.
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