Bitcoin (BTC) has fallen below the critical $100,000 level as trade tensions between the United States and China escalate. The US proceeded with its 10% tariffs on China, prompting retaliatory measures from Beijing, including additional tariffs on US goods and tightened export controls on key raw materials.
The ongoing trade war has heightened volatility in the crypto market, with analysts predicting further uncertainty in the coming days. Despite a brief relief rally to $102,000 following the US delaying tariffs on Mexico and Canada, Bitcoin failed to sustain its momentum above the $100,000 mark.
Historically, heightened tariffs have spelled trouble for cryptocurrencies. In 2018, when US President Donald Trump first initiated a trade war with China, BTC plummeted by 65%, while the S&P 500 dropped 12% in the weeks following the implementation of tariffs.
As Bitcoin struggles to hold the $100,000 level, concerns are mounting about a potential breakdown in price. Technical analysis suggests that if BTC fails to hold the $97,190 support level, further downside could be expected. The top digital asset is currently trading in a bearish flag pattern, which could indicate a continuation of the downward trend.
The escalating trade tensions between the US and China have far-reaching implications for the global economy and financial markets, including cryptocurrencies. As the two economic powerhouses continue to impose tariffs and restrictions on each other, market participants should brace for increased volatility and potential downside risk in the near term.
Tags: Bitcoin, BTC, US-China trade war, tariffs, crypto market, volatility
Source: https://www.newsbtc.com/bitcoin-news/bitcoin-struggles-to-hold-100000-as-china-strikes-back-with-us-import-tariffs-more-downside-for-btc/