Bitcoin is flirting with the $99,300 level after China announced retaliatory tariffs on certain U.S. goods.
On Tuesday, China’s finance ministry said that starting Feb. 10, it will impose an additional 15% tariff on coal and liquefied natural gas and an additional 10% on crude oil, agricultural machinery and certain vehicles.
China’s tariff announcement comes after the additional U.S. tariffs on Chinese goods took effect today. “The U.S.' unilateral imposition of tariffs severely violates the rules of the World Trade Organization,” the Chinese ministry said in a translated statement.
Meanwhile, China’s Ministry of Commerce announced on Tuesday that it will tighten export controls on products containing tungsten, tellurium, bismuth, molybdenum, and indium, citing the need to safeguard national interests and security.
Bitcoin is currently trading at around $99,300 after dipping to around $98,500 at one stage today and recovering from $92,800 on Monday amid a broader sell-off.
The world’s largest cryptocurrency saw a sharp rebound to above $100,000 on Monday after U.S. President Donald Trump said the tariff threats between the U.S. and Mexico were put on pause for the next month.
“While bitcoin is often discussed as a digital alternative to gold, it is still largely perceived as a risk asset by many investors. As such, China’s retaliatory 10% tariff on the U.S. is likely to put pressure on risk assets, including crypto, much like equities,” Min Jung, research analyst at Presto Research, told The Block.
“However, as seen in today’s V-shaped recovery before the announcement, the initial market reaction may have been an overreaction,” Jung added. “The longer-term impact will depend on whether this marks the beginning of a broader trade escalation or remains a one-off event. That said, we expect volatility to remain elevated as tariff-related headlines continue to drive market sentiment.”
Justin d'Anethan, head of sales at Liquifi, said that while initial market jitters were tied to Trump’s tariffs on Mexico and Canada, it’s “becoming clear that those were just opening shots — the real escalation is happening with China, and potentially Europe next.”
“An escalation into a trade war will further deepen a sell-off of crypto assets unless the US can negotiate a cancellation or postponement like with Canada and Mexico,” said Nick Ruck, director of LVRG Research.
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