Bitcoin Drops Below $100K as US-China Trade Tensions Escalate

Cryptocurrency markets reacted to the escalation of US-China trade tensions on Monday, with Bitcoin sliding below the $100,000 mark. Major cryptocurrencies experienced a decline, with Bitcoin reaching a three-week low and Ethereum hitting its lowest level since September. Investors sought to exit risky assets, but Bitcoin quickly rebounded from a low of $90,000 to over $101,000 before dipping below $99,000 again.

In response to the US's latest trade measures, China swiftly imposed tariffs on key US exports. A 10% tariff was placed on all US imports into China, effective as of 12:01 AM ET. The tariffs target sectors such as energy and agriculture, with 15% duties on coal, LNG, and 10% tariffs on crude oil and select automobiles. These measures will go into effect on February 10. China also introduced export controls on critical minerals like tungsten and ruthenium, citing national security concerns.

The trade conflict between the US and China shows no signs of easing. While President Trump temporarily suspended proposed tariffs on Mexico and Canada, offering some relief to global markets, no such leniency has been extended to China. Additionally, China launched an antitrust investigation into Google, signaling further tensions with American companies.

Altcoins also saw sharp recoveries, with XRP rising by 50% and Solana advancing to trade at $210. Despite cryptocurrencies remaining sensitive to macroeconomic events, the pause in tariffs on Mexico improved market sentiment and sparked renewed speculative interest in digital assets. Ethereum has also gained and is currently trading above the $2700 mark.