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US-China Trade War Rattles Crypto – What’s Next for Bitcoin?

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China recently announced a 10% tariff on US crude oil and agricultural machinery in response to US tariffs on all Chinese imports, reigniting fears of another prolonged trade war.

The ongoing trade dispute between the US and China has escalated further, triggering significant volatility in global markets, including cryptocurrencies.

Market Fallout and Crypto Reaction to US-China Trade Wars

China imposed a 15% tariff on US coal and LNG while adding a 10% levy on crude oil and farm equipment. The move comes after US President Donald Trump reintroduced aggressive trade policies to curb China’s economic influence.

While market sentiment initially soured, some analysts argue that China’s latest tariffs may not have as severe an impact as initially feared. According to The Crypto Lark Davis, China imports relatively little from the US in the affected categories.

“China imports 6% of its LNG from the USA. 4 million tons versus USA total export globally of 87 million tons in 2024. Coal the USA ships about 6% of its coal exports to China. For agricultural equipment, could not find any firm numbers so it seems to be small. This is not the equivalent of the Mexico and Canada trade disputes,” Davis explained.

Davis believes the market’s reaction may be overblown and warns against panic-driven selling. Borovik, another popular user on X, echoes this sentiment, stating that traders dumping crypto in response to the tariffs will likely regret it in 48 hours as the market stabilizes.

In contrast to the US-China tensions, a temporary trade reprieve between the US and Canada eased market concerns. As BeInCrypto reported, Trump agreed to delay tariffs on Mexico and Canada for 30 days. In return, there will be enhanced border enforcement against drug trafficking and illegal migration.

The development prompted a quick recovery for Bitcoin, which briefly reclaimed above the $100,000 milestone. This suggested that crypto markets remain highly reactive to geopolitical shifts. However, analysts remain cautious, with many expecting continued volatility as the trade war evolves.

Andrew Kang, a well-known crypto market analyst, warned that Ethereum (ETH) prices could retreat to the $2,200-$2,400 range if the trade war intensifies. As of this writing, the Ethereum price was $2,722, up by almost 8% since the Tuesday session opened.

“Back to 2200-2400 if China trade war is real,” Kang wrote.

In hindsight, over $2 billion had been wiped out from the crypto market on Monday in a historic liquidation event. Despite the panic, seasoned investor Robert Kiyosaki remains bullish on Bitcoin. He labeled the price drop a “buying opportunity,” emphasizing that crypto remains a hedge against inflation and economic instability caused by geopolitical tensions.

The historical resilience of Bitcoin and cryptocurrencies in turbulent times remains a key talking point.

Jeff Park, head of Alpha Strategies at Bitwise Asset Management, foresees Bitcoin’s inevitable rise despite short-term fluctuations. He argues that the crypto market is becoming a haven for investors seeking alternatives amid global trade uncertainty.

“Tariffs might be just a temporary tool, but the permanent conclusion is that Bitcoin is not only going higher—but faster,” Park wrote.

While the trade war introduces fresh volatility, seasoned traders highlight the importance of strategic decision-making. As the US and China continue their economic standoff, the crypto market will likely experience further swings. However, long-term holders and institutional investors may find opportunities in the chaos.

BTC Price Performance
BTC Price Performance. Source: BeInCrypto

BeInCrypto data shows BTC was trading at $99,474 as of this writing, up by almost 6% since Tuesday’s session opened.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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MicroStrategy Buys No Bitcoin, Breaking 12-Week Streak

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According to Michael Saylor, MicroStrategy finally broke its 12-week streak of consecutive weekly Bitcoin purchases. The firm did not sell any shares of Class A common stock this week, nor did it use proceeds to buy BTC.

The firm may owe billions of taxes on its unrealized gains, and Bitcoin’s price is proving extremely volatile due to US tariffs and political instability. However, Saylor gave very little indication of MicroStrategy’s next move.

MicroStrategy Stops Buying Bitcoin

Since Michael Saylor began directing MicroStrategy to acquire Bitcoin, the firm has become one of the world’s largest BTC holders.

Since late October, the firm has made at least one purchase every week, going from huge buys to slowly diminishing acquisition sizes. MicroStrategy began issuing more shares to ramp up the acquisitions, but Saylor just announced a general pause:

“Last week, MicroStrategy did not sell any shares of Class A common stock under its at-the-market equity offering program, and did not purchase any Bitcoin. As of February 2, 2025, we hold 471,107 BTC acquired for ~$30.4 billion at ~$64,511 per Bitcoin,” Saylor claimed.

This announcement has left the community somewhat confused. In December, there were credible rumors that MicroStrategy may pause its Bitcoin purchases in January.

However, this pause did not happen, and the company’s acquisitions actually increased towards the end of the month. So, it’s surprising that the firm halted its purchases, seemingly when the BTC price presented notable buying opportunities last week.

MicroStrategy bitcoin purchases
MicroStrategy’s 12-Week Bitcoin Purchase Streak. Source: Bloomberg

A few factors may have contributed to this switch in tactics. For one thing, Bitcoin’s value is in a tough spot. Since the threat of US tariffs against Mexico, Canada, and China, it and the broader crypto market took a nosedive.

With further economic chaos looming on the horizon, MicroStrategy may take a conservative approach to Bitcoin investment.

There is also another factor. Although BTC took a dive today, it’s been in a sustained bull market otherwise. MicroStrategy may owe billions in unreleased gains regarding its Bitcoin prices, which would add more complexity to a delicate situation.

For now, it’s difficult to predict where the company will go from here.

One important consideration is the pause on stock sales alongside BTC buys. MicroStrategy has been using these to fund its Bitcoin accumulation, and the firm may stop committing so heavily to the asset.

Michael Saylor did not give any direct indication of whether it will resume these purchases soon. Many factors are in the air right now, but the firm remains committed to its Bitcoin-first strategy.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Robert Kiyosaki Says Bitcoin Crash Is a Buying Opportunity

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Financial author and investor Robert Kiyosaki urges investors to seize the moment as Bitcoin (BTC) plummets following US President Donald Trump’s newly imposed tariffs.

Bitcoin’s latest drop caused massive liquidations across the crypto market, marking a new historic crash.

Robert Kiyosaki Urges Investors to Buy Bitcoin Now

The renowned author of Rich Dad Poor Dad took to social media to express his views. He called the current market drop an excellent opportunity for those looking to build wealth.

“Brutal crash here now. The stock, bond, real estate, gold, silver, and Bitcoin markets are crashing. The best assets in the world are going on sale. Millions will lose their jobs. This is the best time to get rich. Do not be a loser. Stay cool. Take care,” Kiyosaki stated in the post.

Indeed, Bitcoin fell as much as 4.3% between Sunday and the early hours of the Asian session on Monday. It dropped below $93,000 for the first time in three weeks. BeInCrypto data shows BTC was trading for $95,810 as of this writing, a modest recovery since the Monday session opened.

BTC Price Performance
BTC Price Performance. Source: BeInCrypto

Meanwhile, this sharp downturn is largely attributed to US President Donald Trump’s new trade tariffs, announced over the weekend. The administration imposed a 25% levy on imports from Canada and Mexico and a 10% tariff on Chinese goods. This caused widespread panic in financial markets, with crypto liquidations reaching above $2 billion on Monday.

“Trump’s tariff war is impacting the whole market. Concerns about trade wars and stagflation, triggering recessions, are cascading across altcoins and Bitcoin,” BTC Markets CEO Caroline Bowler told Bloomberg.

The tariffs have set the stage for what could be a prolonged trade war, with Canada, Mexico, and China all expected to retaliate. As a result, investors appear to be fleeing high-risk assets, including Bitcoin and crypto in general.

Market analysts warn that these tariffs will affect approximately $1.3 trillion of US trade, potentially significantly increasing costs for American consumers and businesses.

“The trade war is live: New tariffs from President Trump are set to impact $1.3 trillion worth of US trade. The US stock market has lost over -$1.5 trillion of market cap with ~43% of all US imports soon subject to tariffs,” capital market writer Kobeissi Letter observed.

Despite the widespread market turmoil, Kiyosaki remains bullish on Bitcoin and other assets. He has consistently warned of a market selloff, and as BeInCrypto reported recently, he predicted that Bitcoin would fall in tandem with the stock market downturn.

He believes that downturns like these create wealth-building opportunities for those prepared to invest when prices are low. Kiyosaki’s investment philosophy, which emphasizes buying assets during periods of fear and selling during euphoria, aligns with his latest advice to investors.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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El Salvador Stays Bullish, Adds 5 Bitcoin To Its Growing Reserve

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El Salvador has once again increased its Bitcoin reserves, thereby expanding its ambitious strategy of incorporating cryptocurrency into its national economy. The country’s total Bitcoin holdings have increased by five, bringing the total to an estimated 6,055 BTC, which is worth over $600 million at current prices.

El Salvador: An Expanding Bitcoin Strategy

The government is moving faster now in buying Bitcoin compared to before, when it only bought one Bitcoin each day. El Salvador has bought more than 50 BTC in the last month, showing a stronger effort to increase its digital currency holdings.

El Salvador Bitcoin Holdings. Source: Bitcoin Office

This happened right after the government made a $1.4 billion deal with the International Monetary Fund (IMF). The agreement stated that Bitcoin payments should be optional and that the government should have limited participation in the cryptocurrency area. The government is still committed to growing its Bitcoin holdings, no matter the situation.

Bitcoin Purchases Continue Post-IMF Agreement

El Salvador demonstrated its commitment to maintaining an active presence in the cryptocurrency market by promptly purchasing 11 BTC, which is worth over $1 million, subsequent to the IMF agreement. This action is indicative of the nation’s assurance in Bitcoin as a long-term asset, despite the pressures of external financial markets and policy constraints.

El Salvador Bitcoin Holdings. Source: Bitcoin Office

President Nayib Bukele strongly supports Bitcoin and has always encouraged its use in the country. His government strongly believes that Bitcoin can help protect against inflation and serve as a good alternative to regular banks.

Mixed Reactions From The Global Community

Global financial institutions and economic experts have different views on El Salvador’s Bitcoin policy. Some people praise the country for leading the way in adopting Bitcoin, while others warn about market volatility and regulatory hurdles.

BTC is currently trading at $95,393. Chart: TradingView

Bitcoin’s influence on financial stability has been a subject of concern for the IMF and other international organizations. Nevertheless, the Salvadoran government appears to be unwavering in its commitment to the potential advantages of crypto integration, including economic diversification and increased financial inclusion.

What Lies Ahead For El Salvador’s Bitcoin Experiment

El Salvador continues its Bitcoin adventure, but its long-term success is doubtful. Are the nation’s large crypto investments economically beneficial or will market volatility cause financial instability? The result depends on time.

For now, El Salvador is stepping up its Bitcoin efforts, showing its commitment to digital assets despite external challenges. In the growing world of cryptocurrencies, the next few years will determine whether this ambitious strategy will be a cautionary tale or a model for other governments.

Featured image from Fortune, chart from TradingView



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