Bitcoin regains ground amid China’s political decisions

Cryptocurrency media The Block informs: Bitcoin BTC $95,838.41 Bitcoin -0.93% Market capitalization $1.9 trillion VOL. 24 hours $0.92 billion is trading at $ 99,300 after China announced new tariffs on American goods.

China has imposed an additional 15% duty on imported coal and liquefied natural gas, as well as 10% duties on oil, agricultural machinery, and certain types of vehicles. This was a response to the tariffs imposed by the United States, which came into effect on Tuesday. The Chinese Ministry of Finance said that Washington violates the rules of the World Trade Organization by imposing restrictions unilaterally.

In addition, China has announced restrictions on the export of important metals such as tungsten, tellurium, bismuth, molybdenum, and indium, citing the need to protect national interests and security.

Bitcoin regains ground after a drop. After falling to $ 98,500 in the morning, it recouped its losses, settling at $ 99,300. The day before, the cryptocurrency dropped to $ 92,800, but later jumped above $ 100,000 after Donald Trump announced the suspension of tariffs for Mexico for a month. At the time of writing, the market leader is trading at $ 98,500.

Analysts expect an increase in volatility. Ming Zhong, a researcher at Presto Research, noted that although bitcoin is often seen as digital gold, it remains a risky asset. Therefore, China’s trade restrictions may put pressure on the cryptocurrency market, similar to stock exchanges.

According to Nick Ruck of LVRG Research, an escalation of the US-China trade war could exacerbate the sell-off in assets, including cryptocurrencies. However, if Washington can agree to cancel or postpone the duties, as was the case with Canada and Mexico, the situation may stabilize.