Bitcoin is hovering around the $99,300 mark, rebounding from a broader market sell-off, as investors react to escalating trade tensions between the U.S. and China.
Earlier today, the cryptocurrency briefly dipped to $98,500 but has recovered from Monday’s low of $92,800.
The latest volatility comes after China announced new retaliatory tariffs on select U.S. goods. On Tuesday, the country’s finance ministry revealed that starting February 10, it will impose an additional 15% tariff on coal and liquefied natural gas, alongside a 10% tariff on crude oil, agricultural machinery, and certain vehicles.
This move follows the implementation of fresh U.S. tariffs on Chinese goods earlier today, further intensifying the trade dispute. In a translated statement, China’s finance ministry denounced Washington’s actions, arguing that the unilateral tariff hikes “severely violate” World Trade Organization rules. Adding to the economic standoff, China’s Ministry of Commerce announced plans to tighten export controls on critical materials, including tungsten, tellurium, bismuth, molybdenum, and indium. The ministry cited the need to safeguard national interests and security, a move that could have significant implications for global supply chains.
In parallel, China’s State Administration of Foreign Exchange has introduced new regulations requiring banks to identify and report high-risk transactions, including those linked to cryptocurrencies. The directive mandates banks to monitor foreign exchange activities tied to underground banking, cross-border gambling, and illicit crypto transactions. Financial institutions must assess risks based on identity, fund sources, and trading frequency while enforcing restrictions on flagged entities. Shanghai-based lawyer Liu Zhengyao noted that these regulations strengthen legal grounds for penalizing crypto-related activities, signalling China’s increasingly strict stance on digital assets.
These measures align with China’s broader cryptocurrency crackdown, reinforcing its commitment to regulatory control. Since the ban on crypto trading and related services in 2021 due to financial stability concerns and illicit activity, authorities have promoted the digital yuan (e-CNY) as a state-backed alternative to decentralized digital assets.
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