Bitcoin risks correction below $90K on US-China trade war concerns
Bitcoin faces potential deeper corrections amid concerns over a global trade war following import tariffs imposed by the US and reciprocated by China. China announced tariffs of up to 15% on some US imports, effective Feb. 10, in response to US tariffs introduced by President Trump. Bitcoin's price briefly dipped below the $100,000 mark, highlighted by a drop to $96,200 on Feb. 4. Analysts suggest that while the tariffs may drive investors to consider Bitcoin as a hedge against inflation, increased volatility in traditional markets could prompt a temporary sell-off, risking Bitcoin falling below $90,000. Market tensions could lead to broader corrections across risk assets. Bitcoin needs to stabilize above $97,000 to avert further volatility, as a drop below this level could trigger significant leveraged long liquidations. Investors are closely monitoring upcoming negotiations between Trump and Chinese President Xi Jinping, which could influence market reactions to trade tensions.
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