YEREVAN (CoinChapter.com) — China imposed a 10% tariff on US crude oil and agricultural machinery, alongside a 15% tariff on coal and LNG, in response to US trade restrictions on Chinese imports. The move escalated tensions, affecting Bitcoin price and crypto markets, which saw increased volatility.
The US-China trade war intensified after President Donald Trump reintroduced strict trade policies targeting Chinese goods. The crypto market initially reacted with a sharp downturn, but some analysts believe the impact may not be as severe as expected.
Bitcoin Price Faces Pressure as Crypto Markets See $2 Billion Liquidation
The crypto market experienced a $2 billion liquidation on Monday, causing Bitcoin price to drop. However, some analysts suggest the reaction was exaggerated. Crypto Lark Davis pointed out that China’s reliance on US imports in the affected sectors remains limited.
“China imports 6% of its LNG from the USA—4 million tons versus the 87 million tons exported globally in 2024. The US exports about 6% of its coal to China. Agricultural equipment numbers are unclear, but the impact appears small. This is not comparable to trade disputes with Mexico or Canada,”
Davis stated.
China Oil and LNG Imports. Source: TheCryptoLarkTraders on X noted that selling Bitcoin in response to the tariffs could be a short-term reaction. Borovik, a well-known market analyst, commented that crypto markets tend to recover quickly after such events.
Crypto Selling After Tariffs. Source: BorovikBitcoin Recovers After US Eases Tariffs on Canada and Mexico
While US-China tensions remain high, a temporary easing of tariffs on Canada and Mexico helped Bitcoin price rebound. Trump postponed tariffs on Mexico and Canada for 30 days, linked to increased border enforcement measures.
Mexico-US Tariff Agreement. Source: Claudia Sheinbaum PardoAfter the announcement, Bitcoin briefly reclaimed the $100,000 level, demonstrating how crypto markets react to global trade policies. However, some analysts remain cautious about further price swings.
Ethereum price also reacted, with Andrew Kang, a known market analyst, stating that ETH could drop to $2,200-$2,400 if tensions escalate in a US-China trade war.
“Back to $2,200-$2,400 if China trade war is real,”
Kang noted.
As of this writing, Ethereum price was $2,727, up 8% since the Tuesday session began.
Ethereum at $2,727. Source: TradingViewCrypto Market Volatility Increases as Institutional Investors Watch
Despite the crypto market volatility, some market watchers view Bitcoin as a hedge against trade war risks. Robert Kiyosaki highlighted that Bitcoin price dips present opportunities, referencing its historical role as an asset that responds to inflation concerns.
Market Crash Warning. Source: Robert KiyosakiMeanwhile, Jeff Park, from Bitwise Asset Management, emphasized that despite fluctuations, Bitcoin remains on an upward trajectory.
“Tariffs might be temporary, but Bitcoin is not only going higher—but faster,”
Park stated.
Tariff Analysis and Bitcoin. Source: Jeff Park
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