Bitcoin Drops to $98,000 Amid US-China Trade Tensions
Bitcoin traded at $98,110, down 1.88%, amid US-China trade tensions. While Bitcoin briefly exceeded $100,000, renewed tariffs from China caused it to retreat. Other cryptocurrencies, including Ether, also saw losses, but some rose. Overall market capitalization declined by 2.69% to approximately $3.22 trillion, reflecting the volatility in crypto prices due to global economic conditions.
Bitcoin’s price experienced a decline of 1.88 percent within the last 24 hours, now trading at $98,110 as of February 5, according to CoinMarketCap. This drop follows US President Donald Trump’s announcement of new tariffs affecting imports from China, Canada, and Mexico. Although the tariffs on Canada and Mexico have been postponed for a month, prompting a recovery in Bitcoin’s value earlier this week, uncertainties regarding the trade situation persist.
On Monday, Bitcoin had been trading at $94,300. In Indian markets, BTC faced a slight decline of under two percent, settling at $104,890 on local exchanges. The cryptocurrency briefly crossed the $100,000 threshold before retreating back, as sentiments shifted following new tariffs imposed by China on US products, such as coal and crude oil, heightening concerns over a potential trade war.
Ether, another significant cryptocurrency, recorded a decrease of 1.07 percent, trading at $2,715 on international exchanges. The asset mirrored this downward trend on Indian platforms, where it is now priced at $2,905. The overall atmosphere in the market is cautionary, as experts advise traders to remain vigilant amid volatile global circumstances arising from ongoing trade tensions.
According to the CoinSwitch Markets Desk, market participants remain apprehensive, influenced by the interplay of fear and greed during this period of uncertainty. Avinash Shekhar, CEO of Pi42, emphasized the potential of cryptocurrencies to behave both as a hedge against inflation and a risky asset in fragile market conditions. Meanwhile, the majority of cryptocurrencies have seen price declines, including Dogecoin, Cardano, and Binance Coin, contributing to a 2.69 percent dip in the overall market capitalization, now valued at approximately $3.22 trillion.
Despite the overall decline, certain cryptocurrencies like Iota, Flex, Status, and Braintrust observed price increases. As regulatory discussions unfold in the US surrounding cryptocurrencies, optimism in the market may rise. Notably, a bipartisan group has formed to establish a crypto-regulatory framework, signaling potential stability in the market, with liquidity bolstered by the minting of USDT tokens.
Recent developments in the global economy have heavily impacted cryptocurrency markets, particularly due to rising trade tensions between the United States and China. These tariff announcements, combined with regulatory discussions in the US, have led to increased volatility in cryptocurrency prices. Investors are responding to a landscape marked by both potential caution and opportunity, with various cryptocurrencies reflecting these changing dynamics.
In summary, Bitcoin’s recent decrease to $98,110 showcases the influence of US-China trade tensions and associated tariffs. Other cryptocurrencies, particularly Ether, also faced declines; however, select assets experienced gains. The evolving regulatory framework in the United States may foster optimism within the crypto market, despite the overarching volatility and uncertainty that persists.
Original Source: www.gadgets360.com
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