As the US-China trade conflict escalates, the cryptocurrency market is showing a significant decline. The United States imposed tariffs of up to 245% on Chinese imports and added export restrictions on semiconductors, which impacted the risk asset market.
President Trump urged China to resume trade negotiations, but China demanded that the US stop its pressure and threats, stating that "dialogue should be based on the principles of equality, mutual respect, and mutual benefit." Previously, the US and China had imposed mutual tariffs of 145% and 125%, respectively.
Bitcoin dropped by more than 2% in 24 hours, and the entire cryptocurrency market plummeted by 3.75%. The stock market was also affected, with Nasdaq 100 futures falling by over 1% and S&P 500 futures declining by 0.65%. Bitcoin is currently trading at $83,826.
Bitcoin fell below the 200-day simple moving average on March 9th, which is interpreted as a signal of a major trend change. Coinbase Institutional analyzed this movement as a sign of a new bearish market that began in late March.
David Duong, research head at Coinbase Institutional, stated that the cryptocurrency bull market ended in late February based on the risk-adjusted performance indicator Z-score. Since then, the market has been showing a neutral trend.
However, cryptocurrency prices have maintained relatively stable. A Wintermute trader analyzed that this stability provides confidence in using protective strategies like hedging.
Meanwhile, ahead of the Federal Reserve Chair's speech, gold rose by 26% this year, setting a new record of $3,300 per ounce amid the intensifying US-China conflict. The US dollar has fallen by 9%. Analyst Ali Martinez predicted that Bitcoin is showing adjustments within its current channel, with support at $83,200, suggesting the possibility of a rebound.
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