The recent relief rally for Bitcoin has stalled as the crypto market reacts to escalating tensions in the U.S.-China trade war. Bitcoin has fallen back to $77,500 after briefly reaching $80,000. The announcement of additional tariffs of 104% on Chinese goods sparked a sell-off in the stock market, which affected cryptocurrency prices. Bitcoin is down 1.2% in the last 24 hours, while Ethereum has dropped nearly 4%, falling below $1,500. The offshore Chinese yuan has weakened to 7.4 against the U.S. dollar, which could result in capital flight from China seeking refuge in Bitcoin if the yuan further devalues. Observers note potential impacts of trade tariffs on both cryptocurrencies and traditional markets, as highlighted by analyst Kirill Kretov, who expresses concerns about ongoing geopolitical tensions leading to increased market volatility. DeFi Technologies has been a notable outlier, rising 10.27%, contrasting with losses in major crypto equities like Bitdeer and Coinbase. Overall, the choppy market environment may persist as participants navigate this heightened uncertainty.

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