Bitcoin Dips 2.66% as China Strikes Back: Is the Crypto Bull Run Over?

Published by

Vignesh S G

February 4, 2025

Bitcoin Slips to $98K as China Strikes Back with Tariffs and Google Probe

The US-China trade war just took a dramatic turn. Beijing has fired back at Washington’s 10% tariff on Chinese goods with its own counter-tariffs on US imports, escalating tensions between the world’s two biggest economies. While Bitcoin initially benefited when President Donald Trump delayed tariffs on Canada and Mexico, China’s latest move has rattled the crypto market.

Bitcoin has already dropped 2.66% today. With geopolitical uncertainty at an all-time high, Bitcoin’s next move could set the tone for the days ahead.

Let’s break it down.

The Story Behind Trump’s Tariffs

On February 1, Trump announced plans to impose tariffs on Canada, Mexico, and China. Bitcoin, which started the day at $102,398.67, fell 4.64% between February 1 and 2 as the market reacted.

However, when rumors spread that Trump might pause tariffs on Canada and Mexico, Bitcoin buyers jumped back in, pushing prices higher. On February 3, BTC surged 3.75%, climbing back above $100K.

Adding to the optimism, Trump’s approval of an executive order to establish a US sovereign wealth fund encouraged more investor confidence.

Just as Bitcoin was recovering, China’s counter-tariffs triggered fresh market fears. The uncertainty has led to another selloff, with Bitcoin dropping 2.66% today alone.

Crypto Experts Predict More Volatility

Top analysts expect Bitcoin’s price swings to continue in the short term:

Michael Van de Poppe, a well-known crypto analyst, predicts ongoing market volatility.

Phoenix, an experienced trader, believes Bitcoin is settling into a new short-term trading range due to uncertainty.

Axel Adler Jr., an On-chain analyst, noted that Bitcoin’s funding rates have turned negative, a signal often linked to future price increases.

A New Crypto Strategy is Coming?

As Bitcoin struggles with market uncertainty, David Sacks, Trump’s AI and cryptocurrency advisor, is set to hold a press conference today to outline the government’s crypto plans.

Joining him will be key policymakers, including:

Senate Banking Committee Chairman Tim Scott
Senate Agriculture Committee Chairman John Boozman
House Financial Services Committee Chairman French Hill
House Agriculture Committee Chairman G.T. Thompson

This event is expected to highlight how the administration aims to make the US a global leader in cryptocurrency innovation.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.