Zinger Key Points
- China announced new tariffs on U.S. goods while restricting exports of critical materials, increasing economic uncertainty.
- Analysts say Bitcoin’s resilience highlights its growing connection to macroeconomic factors and global trade shifts.
- Get Pro-Level Earnings Insights Before the Market Moves
Bitcoin BTC/USD is trading around $99,200 on Tuesday, following China’s announcement of retaliatory tariffs on certain U.S. goods.
What Happened: On Tuesday, China announced new tariffs on certain U.S. imports, marking a retaliatory response to recent U.S. trade measures. Beginning Feb. 10, China will impose:
- A 15% tariff on coal and liquefied natural gas
- A 10% tariff on crude oil, agricultural machinery and specific vehicle categories
Additionally, the Chinese Ministry of Commerce revealed new export restrictions on tungsten, tellurium, bismuth, molybdenum and indium, citing concerns over national security.
These critical materials play a key role in various industrial and technological applications.
China has strongly criticized the U.S. tariffs, stating: “The U.S.’ unilateral imposition of tariffs severely violates the rules of the World Trade Organization.”
Why It Matters: Bitcoin's price fluctuations over the past two days reflect shifting investor sentiment tied to geopolitical events.
Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, observed that recent developments have influenced market behavior.
“A huge turnaround in sentiment yesterday on the back of delayed Mexican and Canadian tariffs saw Bitcoin trade from a low of $91,300 to a high of $102,500,” he said in a note sent to Benzinga.
Although Bitcoin briefly surged past $100,000 on Monday following U.S. President Donald Trump's temporary pause on new tariffs for Mexico and Canada, its momentum was interrupted as trade tensions with China escalated.
Kendrick noted that Bitcoin's price action remains in a consolidation phase, with traders waiting for clearer signals from the U.S. bond market and broader economic indicators.
Also Read: Market Skeptical Of DOGE Hype, Questions Elon Musk’s Execution, Bernstein Says
What Experts Are Saying: The overall cryptocurrency market has gained 3.3% in the last 24 hours, rebounding from recent losses. However, sustained demand remains uncertain.
Alex Kuptsikevich, Chief Market Analyst at FxPro, pointed out that while Monday's rebound was strong, market enthusiasm appears to be fading:
“The violent recovery from Monday's kick-off crash has been losing traction for the past few hours. It seems that while the market has not gone into all-out sell-off mode, a reason for sustained buying is hard to find as threats of surprise tariffs persist.”
Ethereum ETH/USD is currently trading near $2,700, having dropped below its 200-day moving average, a key technical indicator. XRP XRP/USD is trading around $2.60, down from its Monday close of $2.78.
Kuptsikevich also noted that Ethereum often signals broader market trends, and its weakness suggests continued investor caution.
Despite recent swings, analysts emphasize Bitcoin's resilience in the face of macroeconomic challenges.
Avinash Shekhar, co-founder and CEO of Pi42, highlighted how investor sentiment is shifting:
“Volatility and resilience are two sides of the same coin in the crypto market. Macroeconomic factors and investor confidence play a key role in shaping the market. The recent rebound in the crypto market highlights its growing correlation with broader economic trends,” he said.
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