Bitcoin, XRP Drop as China Hits Back on U.S. Tariffs | Crypto News
Crypto markets tumbled as China imposed retaliatory tariffs on the U.S., reversing earlier gains in Bitcoin, XRP, and Dogecoin after a 20% surge.
By Tylt Editorial Team
XRP and Dogecoin jumped 20% before pulling back on China’s retaliation
Bitcoin and ether gained nearly 4% but face uncertainty ahead
Traders remain divided on long-term effects of escalating tariffs
XRP and Dogecoin experienced a sharp 20% rally before reversing course as the U.S.-China trade conflict intensified. The broader crypto market initially saw gains as traders capitalized on a "buy-the-dip" strategy following a massive $2.2 billion liquidation event on Monday. However, optimism faded as China retaliated with new tariffs against the U.S., sparking a wave of uncertainty across global markets.
Bitcoin and ether climbed nearly 4%, while Solana’s SOL and Cardano’s ADA saw modest gains of around 3%. Yet, the rebound lost steam during Asian trading hours, coinciding with the expiration of the U.S. deadline for imposing additional tariffs without a resolution in sight.
Market analysts warn that escalating tariffs could dent investor appetite for risk assets, including cryptocurrencies. Ben El-Baz, Managing Director at HashKey Global, suggested that the U.S. could mitigate the negative impact by adopting more crypto-friendly policies, potentially cushioning the damage.
Despite Bitcoin’s growing reputation as "digital gold," Min Jung, a research analyst at Prestro Research, noted that it continues to behave like a risk asset. China’s retaliatory 10% tariff on the U.S. has pressured the crypto market much like equities, further demonstrating Bitcoin’s sensitivity to macroeconomic events.
While some investors believe the reaction may have been exaggerated, volatility is expected to persist as markets gauge whether this is merely a tactical move or the beginning of a prolonged economic standoff. Traders are closely watching whether this situation echoes past trade conflicts that were eventually reversed or if it marks a deeper shift in global economic policies under Donald Trump’s administration.
Monday’s turmoil initially provided an opportunity for traders to hedge with dollar-backed stablecoins, but concerns remain about broader economic repercussions. If the trade war escalates, crypto markets may see further instability in the coming days, with potential price swings mirroring the movements of traditional risk assets.
