Bitcoin has seen a decrease in value as trade tensions escalate. Currently, BTC is trading at $100,780, which is nearly 9% below its all-time high of $109,000, reached on January 20 during Donald Trump’s inauguration.
In response to U.S. tariffs, China has announced its own retaliatory measures. Starting from February 10, China will impose 15% tariffs on coal and liquefied natural gas, as well as 10% tariffs on crude oil, agricultural machinery, and certain vehicles.
Furthermore, China’s Ministry of Commerce and Customs authorities have 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.
Julian Evans-Pritchard, head of China Economics at Capital Economics, stated that China’s measures, while significant, are relatively modest compared to U.S. actions. He noted, “These measures seem designed to send a message to both the U.S. and domestic audiences without causing severe economic damage.” The Chinese tariffs only target approximately $20 billion worth of annual imports from the U.S., a fraction of the $450 billion worth of Chinese goods affected by U.S. tariffs.
This escalation comes after the U.S. government imposed new tariffs on imports from Canada, Mexico, and China on February 1st. U.S. tariffs increased duties by 25% on imports from Canada and Mexico, while a 10% tariff was applied to Chinese imports. This move led to a sharp reaction in global financial markets as trade tensions heightened. However, Donald Trump later agreed to postpone 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 rose by 2.8%, while South Korea’s Kospi increased by 1.3%. The British pound and the euro both saw slight declines against the U.S. dollar, trading at $1.24 and $1.03, respectively.
Bitcoin’s Resilience Amid Crypto Turmoil
Compared to other cryptocurrencies, Bitcoin has shown resilience amidst the recent tariffs. 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 highlights how geopolitical and economic events, even if seemingly unrelated, can cause significant volatility in the sector. A similar pattern was observed recently when a DeepSeek-induced selloff of Nvidia had a broad impact on the crypto market, particularly AI coins. These events emphasize the sensitivity of cryptocurrencies to macroeconomic factors, with global political moves playing an increasingly significant role in shaping market performance.