Bitcoin Falls Below $80K Amid U.S.–China Trade War Escalation

Bitcoin fell below the $80,000 mark on Thursday, dipping 4.2% to settle at $79,783. This drop comes on the heels of optimism from the previous day, when Bitcoin had spiked over 8%. The slump was largely attributed to fears surrounding deteriorating U.S.–China trade relations.

U.S.–China Tensions Shake Markets

The mood in financial markets soured after the White House revised its trade policy stance, announcing that effective tariffs on Chinese goods would rise from 125% to 145%. This unexpected move ignited investor concerns about an escalating economic clash between the two superpowers.

Following the announcement:

The Nasdaq Composite fell sharply by 5.5%.
Crypto-focused equities were hit hard:
- MicroStrategy (MSTR) dropped 11.2%
- Coinbase (COIN) declined 8.1%
- Marathon Digital (MARA) slumped 9.3%

Impact Across the Crypto Sector

The caution among investors extended to other major digital assets, painting a gloomy picture for the broader crypto market. Notable declines included:

Ethereum (ETH): down 8.6%
Solana (SOL): fell by 6.1%
Cardano (ADA): lost 5.6%

Flight to Safe Havens

Amid the turmoil, traditional safe-haven assets saw strong inflows. Gold surged to a new record high of $3,168, reflecting investor anxiety and reduced confidence in riskier investments like cryptocurrencies. The U.S. dollar index (DXY) also weakened, falling below 101 and reversing gains made since November.

Looking Ahead

Traders and analysts are closely monitoring how China may respond to the increased tariffs, with early signs pointing to restrictions such as cutting U.S. film imports. This ongoing tension introduces greater uncertainty, potentially adding more pressure to already volatile crypto markets.

Source: CoinDesk

U.S.–China Tensions Shake Markets

Impact Across the Crypto Sector

Flight to Safe Havens

Looking Ahead

Related posts: