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The recent increase in tariffs by China against US goods has heightened trade tensions, yet the crypto market remains resilient.
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Despite fears of a potential economic fallout, Bitcoin has shown impressive stability, holding above the $81,000 mark.
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As highlighted by an analyst from COINOTAG, “Crypto assets appear to be insulated from traditional market fluctuations at this point.”
This article explores how the crypto market is reacting to the latest developments in US-China trade relations while emphasizing stability in Bitcoin prices.
Crypto Market Stays Calm Amid Escalating US-China Trade War
Despite escalating tensions between the world’s two largest economies, the cryptocurrency market has shown remarkable stability. Investors appear unfazed by the intensifying trade conflict.
Crypto market capitalization remains around $2.5 trillion. Bitcoin’s price holds above $81,000 after recovering 10% since April 9, when Trump announced a 90-day tariff pause, excluding tariffs on China.
Bitcoin Price Performance. Source: COINOTAG.
According to the Chinese statement, the tariff hike follows China’s Customs Law, Tariff Law, and Foreign Trade Law. The government reaffirmed its commitment to international rules and accused the US of violating global trade norms, labeling Washington’s policy as “unilateral bullying.”
Notably, China warned that it would not respond to further tariff increases from the US, arguing that American goods have already lost their competitiveness in the Chinese market at the current tariff level.
“Given that US exports to China are no longer market-viable under the current tariff rate, China will not respond further if the US continues to raise tariffs on Chinese goods,” the statement said.
The tariff dispute is not new, as the US and China have engaged in retaliatory tariffs since 2018. Key sectors affected include agriculture, tech, and energy.
The latest hike pushes tariffs to a record 125%. Economists warn that this escalation could disrupt global supply chains, raise prices, and intensify inflationary pressures in both nations.
Moreover, Bitcoin miners are feeling the impact as prices for mining equipment surge amid the trade tensions.
China’s tariff hike sends a strong message about its tough stance in trade negotiations. While the crypto market remains stable for now, analysts urge investors to monitor upcoming developments—especially any potential response from the US.
If no resolution is reached, the ongoing standoff could trigger a broader economic fallout. The world is observing closely to see whether the trade war will de-escalate or deepen the divide between the two economic superpowers.
Conclusion
The fallout from the escalating tariffs between the US and China may not currently impact the cryptocurrency market significantly, with Bitcoin maintaining its strength. However, as trade relations continue to deteriorate, investors should stay vigilant regarding potential shifts in market dynamics and corporate responses to these economic pressures.
