- China has imposed a significant 15% tariff on US exports worth $14 billion.
- China’s move is a retaliation to Trump’s 10% tariff on Chinese goods.
- The crypto market could benefit or face adverse effects of this ongoing trade war soon.
China has now imposed 15% tariffs on nearly $14 billion of US exports, hitting key sectors like energy, vehicles, and agricultural equipment and further fueling the trade war. This can be better termed as retaliatory tariff, as in response to President Donald Trump imposing a 10% tariff on Chinese goods.
The tariffs to take effect cover liquefied natural gas (LNG), coal, crude oil, and certain vehicles. These measures promise extensive effects on bilateral trade and global markets as investors prepare for increased volatility. In a parallel move, President Trump imposed an additional 25% tariff on imports from Canada and Mexico.
China’s retaliatory tariffs arrive as global markets are already facing rising uncertainty. With trade disputes worsening, many investors steered clear of riskier assets like cryptocurrency, anticipating instability in both the global economy and traditional finance.
Yet, economic instability might open doors for decentralized assets such as Bitcoin and other cryptocurrencies. If confidence in traditional finance wanes because of the intensifying trade war, investors could turn to these digital currencies as a hedge—much like gold has long served as a safe haven during crises.
Crypto as a Safe Haven?
Bitcoin, often called “digital gold,” could gain broader acceptance as a way to safeguard wealth from inflation, currency devaluation, and uncertainty. For many, cryptocurrencies provide a decentralized alternative to government-run currencies and traditional banks, rendering them an appealing choice during economic stress.
A TradingView chart shows that the altcoin market cap—excluding Bitcoin and Ether (ETH)—currently stands at $882.79 billion. The sector meets strong resistance at the 20-day exponential moving average (EMA), at $935 billion. A breakout above this level with robust volume could signal the start of a bullish rally.
Bearish Signals in Altcoins
The Relative Strength Index (RSI) for altcoin market cap stands at 38.28, indicating that bears control the market. Although the line’s slope hints at modest improvement, sellers still dominate.
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