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- Bitcoin fell 7% to $92,500 on Monday, its lowest level in three weeks, and is currently trading at $100,840 after China announced retaliatory tariffs on certain U.S. goods.
- This comes after Donald Trump announced a 25% tariff on imports from Mexico and most of Canada, along with a 10% tariff on goods from China.
Bitcoin has experienced a decline in value amid escalating trade tensions. Currently, BTC is trading at $100,780, which is nearly 9% below its all-time high of $109,000, achieved on January 20 during Donald Trump’s inauguration. China responded to the U.S. tariffs by announcing its own set of retaliatory measures. Starting February 10, China will impose 15% tariffs on coal and liquefied natural gas, along with 10% tariffs on crude oil, agricultural machinery, and some vehicles.
Additionally, China’s Ministry of Commerce and Customs authorities implemented new export controls on more than two dozen metal products and related technologies. These include tungsten, a crucial mineral in industrial and defense applications, and tellurium, which is used in the production of solar cells.
In a statement, Julian Evans-Pritchard, head of China Economics at Capital Economics, suggested that China’s measures, though significant, were modest in comparison to U.S. actions. “These measures seem designed to send a message to both the U.S. and domestic audiences without causing severe economic damage,” he noted. The Chinese tariffs target only around $20 billion worth of annual imports from the U.S., a fraction of the $450 billion worth of Chinese goods impacted by U.S. tariffs.
This escalation follows the U.S. government’s imposition of new tariffs on imports from Canada, Mexico, and China on February 1st. U.S. tariffs raised duties by 25% on imports from Canada and Mexico, while a 10% tariff was applied to Chinese imports. This move caused a sharp reaction in global financial markets as trade tensions heightened. However, later on, Donald Trump agreed to delay the imposition of tariffs on Canada and Mexico for 30 days.
On Tuesday, the market’s response was mixed. After initially recovering some losses on Monday, the global financial markets fluctuated. In Hong Kong, the Hang Seng index surged by 2.8%, while South Korea’s Kospi rose 1.3%. The British pound fell slightly, down half a cent to $1.24 against the U.S. dollar, while the euro saw a similar decrease, trading at $1.03.
Bitcoin’s Resilience Amidst Crypto Turmoil
Among the various assets affected by these tariffs, Bitcoin has demonstrated resilience compared to other cryptocurrencies. In contrast, other major cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) experienced declines of 16%, 23%, and 24%, respectively, just yesterday. However, in the last 24 hours, ADA has managed to rise by 5.15%, while DOGE has increased by 3.425%, now trading at 0.2673.
The reaction of the crypto market underscores how geopolitical and economic events, even if seemingly unrelated, can trigger significant volatility within the sector. A similar pattern was observed recently when a DeepSeek-induced selloff of Nvidia had a broad impact on the crypto market, specifically AI coins. These events highlight the sensitivity of cryptocurrencies to macroeconomic factors, with global political moves playing an increasingly significant role in shaping market performance.
