Yesterday’s brief respite for Bitcoin (BTC) proved short-lived as the digital asset once again slipped below the significant $100,000 price point. This comes amid escalating trade tensions between the U.S. and China, with the U.S. pressing forward with 10% tariffs on China, leading to retaliation from Beijing.
Bitcoin’s journey over the past 24 hours has been a rollercoaster, punctuated by uncertainty over U.S. trade tariffs on Mexico and Canada. BTC experienced a fleeting rally to $102,000 after U.S. President Donald Trump announced a 30-day delay in imposing tariffs on these North American countries.
However, the implementation of U.S. tariffs on China today sparked a sharp downturn, forcing BTC below the $100,000 mark. In response, China’s Ministry of Finance unveiled new countermeasures. Starting February 10, China will levy an additional 15% tariff on coal and liquefied natural gas, coupled with a 10% tariff on agricultural equipment, crude oil, and select vehicles.
Furthermore, Beijing accuses the U.S. of breaching World Trade Organization (WTO) rules with its unilateral tariff policies. The Chinese Ministry of Commerce also announced plans to tighten export controls on key raw materials like molybdenum, indium, bismuth, tellurium, and tungsten, citing national security as the reason.
As trade hostilities between the U.S. and China intensify, market analysts predict increased volatility in the crypto market. Well-respected crypto strategist Michael van de Poppe shared his perspective, expressing optimism that Bitcoin would hit new all-time highs in February, provided it stays above $93K.
Crypto trader and investor Phoenix suggested that BTC might find a new trading range amid the ongoing trade war. However, history indicates that increased tariffs could spell bad news for cryptocurrencies. Web3 enthusiast merts.eth highlighted in an X post that BTC suffered a 65% fall in 2018 when Trump first instigated a trade war with China. The impact wasn’t just confined to digital assets, as the S&P 500 also fell 12% in the weeks post-tariff implementation.
As Bitcoin battles to maintain the $100,000 price point, worries are growing about a possible further price drop. Crypto analyst Ali Martinez recently noted that if BTC can’t hold the $97,190 support level, the leading digital asset could face more hardships. At the time of writing, BTC’s trading price is $99,961, marking a 1% increase in the past 24 hours.
