Bitcoin Struggles To Hold $100,000 As China Strikes Back With US Import Tariffs – More Downside For BTC?
Bitcoin (BTC) enjoyed a brief sigh of relief yesterday as the US delayed its proposed 25% trade tariffs on Mexico and Canada by a month. However, the US proceeded with its 10% tariffs on China, prompting retaliatory measures from Beijing. The escalation has pushed BTC back below the critical $100,000 price level. Bitcoin Suffers Amid Trade Wars After a volatile 24 hours filled with uncertainty surrounding US trade tariffs on Mexico and Canada, BTC experienced a short-lived relief rally to $102,000. This came after US President Donald Trump announced a 30-day delay in imposing tariffs on the two North American nations. However, today’s implementation of US tariffs on China triggered a sharp downturn, causing BTC to break below the $100,000 level. In response, China’s Ministry of Finance announced new countermeasures. Starting February 10, China will impose an additional 15% tariff on coal and liquefied natural gas, along with a 10% tariff on agricultural equipment, crude oil, and certain vehicles. Additionally, Beijing has accused the US of violating World Trade Organization (WTO) regulations with its one-sided tariff policies. The Chinese Ministry of Commerce also stated that it would tighten export controls on key raw materials, including molybdenum, indium, bismuth, tellurium, and tungsten, citing national security concerns. With trade tensions escalating between the US and China, analysts predict heightened volatility in the crypto market in the coming days. Well-known crypto strategist Michael van de Poppe shared his outlook: Bitcoin bounced back swiftly and is currently acting within the range. I assume we’ll see new ATHs in February and it’s quite normal to correct after such a strong bounce. Volatility through the roof, but, as long as Bitcoin remains above $93K, a new ATH is likely. Meanwhile, crypto trader and investor Phoenix suggested that BTC could establish a new trading range amid the ongoing trade war. However, history suggests that heightened tariffs could spell trouble for cryptocurrencies. Web3 enthusiast merts.eth pointed out in an X post that BTC plummeted 65% in 2018 when Trump first initiated a trade war with China. The effects were not limited to digital assets, as the S&P 500 also dropped 12% in the weeks following the implementation of tariffs. Source: merts.eth on XMore Downside For BTC? As Bitcoin struggles to hold the $100,000 price level, concerns are mounting about another potential breakdown in price. Crypto analyst Ali Martinez recently pointed out that if BTC fails to hold the $97,190 support level, there could be more pain for the top digital asset. The analyst made another observation about how BTC is currently trading in a bearish flag pattern. At press time, BTC trades at $99,961, up 1% in the past 24 hours. BTC trades at $99,961 on the daily chart | Source: BTCUSDT on TradingView.comFeatured image from Unsplash, charts from X and TradingView.com Ash Tiwari Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand. Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. 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A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution. When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights. Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries. Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.