Bitcoin Plunges as U.S.-China Trade Tensions Boil Over

Bitcoin's Price Drops Below $100,000 as U.S.-China Trade Tensions Escalate

Bitcoin's price briefly dipped below $100,000 on February 4, as escalating U.S.-China trade tensions sparked fears of a full-blown trade war. The digital asset has been facing choppy waters, with both nations announcing retaliatory import tariffs, according to Cointelegraph.

Analysts Warn of Correction Risks

Market experts see potential for Bitcoin to correct below $90,000 if the broader economic landscape deteriorates. Ryan Lee, chief analyst at Bitget Research, noted that heightened volatility in traditional markets could either push investors to Bitcoin as a hedge or cause a sell-off in risk assets. "Escalating tensions may weaken traditional markets, prompting investors to seek Bitcoin... but broader uncertainty could still trigger short-term corrections," Lee said.

Historical Trends Offer a Silver Lining

Despite the pressure, Bitcoin remains on track with historical cycles. The cryptocurrency is up 525% since the FTX collapse and continues to move within a channel between $90,000 and $109,000. CoinDesk analyst James Van Straten pointed out that Bitcoin's trajectory still aligns with its 2017 cycle.

Bitcoin Slips to $98K as China Strikes Back with Tariffs and Google Probe

Bitcoin and the broader crypto market faced renewed selling pressure on Tuesday as global trade tensions intensified. After the U.S. imposed 10% tariffs, China retaliated with an anti-trust investigation into Google and new tariffs on coal, crude oil, and farm equipment. BTC initially rebounded to $100,000 when the U.S. delayed tariffs on Mexico and Canada but quickly dropped to $98,000 following China's countermeasures.

Crypto Volatility Persists

According to QCP Capital X post, the crypto markets remain highly volatile, reacting sharply to geopolitical developments. Min Jung, a research analyst at Presto Research, said that even though Bitcoin is compared to 'digital gold', it is highly vulnerable and reacts quickly to geo-political problems. The crypto market's initial sharp reaction could be