Bitcoin Dips as China Fires Back With Sweeping Tariffs on U.S. Goods
Markets turned sharply risk-off Friday as China retaliated with a blanket 34% tariff on all U.S. imports, intensifying fears of a full-blown trade war and spooking investors across asset classes.
The announcement, made during European trading hours, sent shockwaves through crypto markets. Bitcoin (BTC), which had been climbing early in the session, reversed course and tumbled $1,600 to $83,000, according to CoinDesk data. Other major tokens — Ether (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) — followed suit, erasing gains and hovering near breakeven.
Meanwhile, S&P 500 and Nasdaq futures dropped more than 2%, underscoring the fragility of investor sentiment amid escalating geopolitical tension.
“This level of retaliation from China heightens the stakes, not just for U.S. markets, but for global economic stability,” said Justin Low of ForexLive, noting that traders may be underestimating the long-term implications.
Eyes now shift to the U.S. jobs report due later Friday, a key macro event that could either deepen the selloff or offer a temporary lifeline for risk assets.
