The crypto Market saw a retreat after a brief rally, with Bitcoin falling from $80,000 to around $76,500. It currently hovers below $78,000, facing a 1.2% drop in the past 24 hours, while Ethereum dropped nearly 4% below $1,500. This decline coincided with the Trump administration’s new tariffs on China, which negatively impacted stocks and led to the depreciation of the Chinese yuan. Bitcoin advocates speculate that a weaker yuan might drive capital towards Bitcoin as a safe haven. Crypto stocks also suffered, with major companies like Bitdeer and Coinbase seeing losses. Market participants are advised to brace for continued volatility amid these uncertain conditions.
The recent relief rally in the cryptocurrency Market lost momentum as news of the Trump administration’s impending tariffs on China shook investor confidence. Bitcoin, after briefly reaching the $80,000 mark, retreated to around $76,500, struggling to stabilize below the $78,000 threshold. In the last day, Bitcoin experienced a decrease of 1.2%, while Ethereum faced a notable drop of nearly 4%, slipping below the $1,500 mark. The overall CoinDesk 20 index, which tracks the 20 largest cryptocurrencies, saw a decline of 2.2%.
Cryptocurrency stocks were not spared from the downturn either. Bitcoin mining company Bitdeer saw its shares plummet by 8.7%, while other major players like MicroStrategy and Coinbase faced losses of 5.3% and 2.3%, respectively. However, DeFi Technologies stood out with a remarkable gain of 10.27%, potentially fueled by speculation regarding a future Nasdaq listing similar to Galaxy Digital.
Amidst this volatility, traditional stock markets like the S&P 500 and Nasdaq dropped by 0.5% and 0.7%, reversing earlier gains of about 4%. The pressure intensified following the White House’s announcement of a staggering 104% tariff on Chinese goods, leading to significant depreciation of the Chinese yuan against the U.S. dollar.
Experts suggest that these tariffs could prompt Beijing to allow a further depreciation of the yuan, which may lead to capital flight from China, with some investors possibly seeking refuge in Bitcoin. As Arthur Hayes pointed out, historical trends suggest that past actions by the People’s Bank of China could have similar repercussions in the coming years.
Kirill Kretov from CoinPanel emphasizes the uncertainty prevailing in the markets due to geopolitical tensions and trade disputes. He warns that unless more participants adapt to these shifting conditions, strong directional trends in both cryptocurrency and traditional markets are unlikely to emerge any time soon.
In this turbulent environment, investors are urged to stay informed about Market dynamics and potential regulatory changes that could impact their trading strategies.
Tags: Cryptocurrency, Bitcoin, Ethereum, Market News, Tariffs, US-China Relations
What is the Bitcoin relief rally?
The Bitcoin relief rally refers to a sudden increase in Bitcoin’s price after a period of decline. This can happen when investors feel more confident about the Market, leading them to buy more Bitcoin.
Why is the rally stalling right now?
The rally is stalling because of rising tensions in the U.S.-China trade war. This uncertainty in global markets makes investors cautious about putting money into Bitcoin and other cryptocurrencies.
How does the U.S.-China trade war affect Bitcoin?
When the U.S.-China trade war escalates, it creates fear in the markets. Many investors pull back their money from risky assets like Bitcoin and prefer safer investments, which leads to price stall.
Is Bitcoin still a good investment?
Bitcoin can still be a good investment for some people, but it’s important to do your research. Prices can go up and down quickly, especially with news about trade wars or other major events.
What should I do if I want to invest in Bitcoin now?
If you want to invest in Bitcoin now, consider starting small. Stay updated on news related to the U.S.-China trade war and other Market trends. It helps to be informed before making any big decisions.