China’s Countermeasures Have Dented BTC Prices As It Fell By 2.5%

The week started with Trump’s swearing-in and his subsequent executive order to create a Sovereign Wealth Fund and impose aggressive tariffs on its major trade partners: China, Canada, and Mexico. 

This was a landslide moment as this incident led to worldwide panic and sharp dips in stocks and their prices. This dip is so sharp that many people are cutting their losses aggressively, creating a vicious cycle.  

Many financial experts are calling out Trump and its administration for its lopsided decision. However, the White House has meant that this was its last-ditch effort to deal with unauthorized immigration and smuggling of uncontrolled substances.

The press release further added, “President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous Fentanyl and other drugs from flowing into our country.”  

China’s Counter To US Tariff 

Regardless of the USA’s beliefs, China, Mexico, and Canada were irked by the decision. The trio decided to take matters into their own hands and impose countermeasures. On February 4th, the Chinese finance ministry announced their counter-tariffs. 

In response to the 10% tariff imposition by the US on China,  the latter retaliated with a 15% tariff on products like coal and natural gas. 10% tariff on crude oil, automobiles, and farming equipment.  

Moreover, China has also imposed strict regulatory checks and restrictions on certain critical minerals that are important for the tech industry. Therefore, this could be the start of a long and arduous trade war between two of the biggest economies of the world. 

Apart from the retaliatory tariffs, the country also launched an anti-monopoly investigation on tech giant Google. This could prove devastating for Google as it might disrupt the tech giant’s dealing with one of the biggest economies of the world.   

Clouds Of Volatility 

This whole matter has truly left the world in a volatile state. If the USA and China devolve into a global trade war, the outcome could be catastrophic. Prices of goods and digital assets like crypto would become unstable. Which in turn can lead to major losses across the world.  

However, there were some positive movements in BTC prices. The prices soared to around $102,000 from $92,000 after Trump announced that Mexico and Canada would get a 30-day headstart to take care of the issues listed by the US. 

 However, the news of the counter-tariff imposed by China has again put a dent in the whole thing. The news knocked the prices down by around 2.5%. Therefore, this dent has again put investors on an edge.  

Endnote: Is BTC In The Blast Radius 

The question persists, ‘Is BTC in the blast radius?” In all honesty, every asset is in the blast radius. Until and unless this impasse is navigated tactfully, every other asset is under fire, and the overall economy has a probability of suffering. 

While the risk of hitting BTC price hitting $90,000 might have been averted, does not mean the crisis has passed. The possibility of the US locking horns with China is very real, putting everyone’s assets at risk.