Bitcoin News Today: Trade Tensions Intensify as Bitcoin Emerges as Global Risk Barometer

Bitcoin's price experienced significant volatility amid escalating U.S.-China trade tensions, with the cryptocurrency serving as a barometer for global economic uncertainty. The announcement by U.S. President Donald Trump of a 100% tariff on Chinese imports triggered a sharp selloff, sending Bitcoin down 8.4% to £78,000 ($104,782) and Ethereum down 5.8% to £2,700 ($3,637) in a single day. The move, framed as retaliation against China's export restrictions on rare-earth materials and critical software, intensified fears of a global supply chain shock and prompted a flight to safer assets. Coinglass data revealed $7.5 billion in liquidations within 24 hours, with smaller tokens bearing the brunt of the decline Bitcoin and Ethereum Plunge After Trump Slaps Full Tariffs on …^[1].

The trade war's macroeconomic ripple effects extended beyond crypto, with the S&P 500 and Nasdaq falling 2% and 2.7%, respectively. Analysts attributed the crypto sell-off to leveraged traders unwinding long positions amid heightened risk aversion. The Long/Short ratio for Bitcoin fell below 1, signaling a shift toward short-term bearish sentiment. Binance and other exchanges reported surges in trading volumes, with Bitcoin-USD spreads widening by over 120% during the most volatile hour Bitcoin and Ethereum Plunge After Trump Slaps Full Tariffs on …^[1].

A temporary de-escalation in tensions emerged when the U.S. reduced tariffs on Chinese imports to 30% for 90 days, sparking a Bitcoin rally to $105,409. China reciprocated by lowering its tariffs on U.S. goods to 10%, a move analysts linked to improved global liquidity and reduced geopolitical risk. Aurelie Barthere of Nansen noted that the easing of trade tensions positioned altcoins and traditional equities to follow Bitcoin's recovery trajectory, with the cryptocurrency potentially trading closer to its all-time highs A “Global Economic Reordering:” US-China Competition and Bitcoin as Tool of US Statecraft^[5].

Technical indicators suggest Bitcoin's resilience amid volatility. Despite the 10% drop following Trump's tariff announcement, the asset remained within its long-term uptrend channel. Monthly Bollinger Bands, a measure of volatility, remained constricted, indicating potential for further upside. The 20-week moving average at $110,000 became a critical psychological level for bulls. If Bitcoin reclaims this threshold, it could signal a sustained recovery, with $160,000–$200,000 as potential targets in the fourth quarter .

Geopolitical considerations underscore Bitcoin's evolving role as a hedge against systemic risk. The U.S. Treasury's push to establish the country as the "premier destination for digital assets" aligns with broader efforts to counter China's financial influence. A proposed Strategic Bitcoin Reserve, coupled with dollar-backed stablecoins, aims to reinforce the dollar's dominance in a digital age. Meanwhile, China's tightening of export controls on rare-earth materials has highlighted the vulnerability of global supply chains, further elevating Bitcoin's appeal as a decentralized, inflation-resistant asset .

Looking ahead, the interplay between trade policy and crypto markets remains critical. While short-term volatility is likely to persist, analysts emphasize that Bitcoin's long-term trajectory is increasingly tied to institutional adoption and regulatory clarity. The approval of Bitcoin ETFs in 2024 and ongoing legislative efforts in the U.S. to formalize stablecoin oversight have already altered traditional price cycles. If trade tensions abate and macroeconomic conditions stabilize, Bitcoin could see renewed inflows, potentially propelling it toward $200,000 by year-end .