US-China Tariffs Spark Bitcoin's $100K Plunge, All-Time High Hopes

US-China Tariffs Send Bitcoin Below $100K, Analysts Eye All-Time High

The escalating US-China trade war has sent shockwaves through global markets, with Bitcoin being no exception. The world's largest cryptocurrency by market cap briefly dipped below the $100,000 mark on Monday, as investors sought to exit risky assets following the announcement of new US tariffs on some of its allies.

Bitcoin, often referred to as "digital gold," has been trading like a risk asset, according to Min Jung, a research analyst at Prestro Research. Jung noted that the US-China tariff standoff is pressuring Bitcoin and altcoins, just as it has affected global equities. Ben El-Baz of HashKey Global added that US policies could help offset some of this damage if crypto-friendly measures are introduced.

Despite the recent dip, analysts remain optimistic about Bitcoin's long-term prospects. Pav Hundal from Swyftx said investors are cautiously optimistic, adding, "If the shadow of tariffs continues to recede, I like Bitcoin's chances of hitting new all-time highs."

However, the crypto market remains tethered to global trade uncertainty, making it crucial for investors to stay informed by tracking their favorite prices and monitoring how they react to news developments.

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%, recovering from previous losses, and Solana advancing to trade at $210