In the early hours of trading on Tuesday, Bitcoin (BTC) faced a notable decline of 2.5% as selling pressure intensified across markets in Asia.
This downturn coincided with China’s announcement of retaliatory tariffs against the United States.
China’s Retaliatory Measures
In a related move, Chinese authorities launched an antitrust investigation into Google, simultaneously designating clothing manufacturer PVH Corp and biotech firm Illumina as unreliable entities.
Beijing’s new tariffs impose a 15% duty on U.S. coal and liquefied natural gas (LNG) and a 10% tariff on a range of products including crude oil, agricultural machinery, pickup trucks, and vehicles with large engines.
This action comes as a countermeasure to U.S. President Donald Trump’s implementation of fresh 10% tariffs on Chinese goods.
Impact on Bitcoin and Market Sentiment
Prior to China’s latest steps, Bitcoin had briefly rallied.
Trump’s announcement of a 30-day suspension on tariffs against Canada and Mexico had invigorated investor optimism, propelling Bitcoin’s price from around $92,000 to over $102,000 as hopes for a resolution to the trade conflict rose.
However, the latest developments from China have tempered that enthusiasm, causing Bitcoin to retreat to $98,500 at the time of this report.
Nasdaq futures were similarly affected, dropping by 0.6%, while the dollar index gained strength as investors sought refuge in safe-haven assets.
Source: Coindesk
