- The ongoing tariff war has disrupted global markets, including crypto, wiping out over $300 billion from the crypto market earlier.
- Following the correction, Bitcoin has rebounded, trading 8.12% higher at $89,589, with eyes on the critical $91,500 resistance level.
The Donald Trump administration has been escalating the tariff war, imposing an additional 10% tariff on China from March 4. However, the world’s second-largest economy was quick to initiate retaliatory measures, adding:
If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.
While Bitcoin (BTC) and the broader crypto markets have bounced back today following a brutal correction earlier this week, China’s counteractions could bring further volatility moving ahead.
China Responds With Bold Message to Trump Tariffs
Responding to President Donald Trump’s actions, the Chinese embassy in the US stated that they are ready to fight the trade war till the end. In their message on the X platform, the Chinese spokesperson said:
Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China. Anyone using maximum pressure on China is picking the wrong guy and miscalculation. If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.
Donald Trump has justified his tariff move by stating that other countries have been using tariffs against the US for decades. Thus, he added that America will match tariffs on a 1:1 proportion with all of its key trade partners, including the European Union, China, Brazil, India, Mexico, and Canada. “This is happening by friend and foe. This system is not fair to the United States and never was… That’s reciprocal back and forth. Whatever they tax us, we will tax them,” said President Donald Trump.
How Will Bitcoin and the Crypto Market React Moving Ahead?
The tariff war has already shaken the global markets over the past week, including cryptocurrencies. As per the previous report, more than $300 billion was eroded from the crypto market earlier on Monday. Top experts predict the volatility will continue moving ahead.
After hitting a low of $83,000 on Tuesday, Bitcoin, along with the overall market, has bounced back again and is currently trading 8.12% up at $89,589. Crypto analyst Michael van de Poppe highlights that Bitcoin’s steady upward momentum brings it closer to a critical resistance level at $91,500.
According to van de Poppe, if Bitcoin successfully flips this resistance, it could re-enter its previous trading range, setting the stage for a push toward a new all-time high. “The crucial resistance is $91.5K. If that flips, we’re back in the range and aiming for the other side, which marks a new ATH,” he explained.
Additionally, the altcoins market is also showing strength, with Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) all up by 7-8% in the last 24 hours. As highlighted in our previous article, all eyes will be on Trump’s White House Crypto Summit this Friday as investors await some big announcements.
