China’s Tariff Hike Pushes Dollar Index Below 100, While Bitcoin Remains Resilient
In a significant move that intensifies the trade war, China has raised tariffs on U.S. goods to a total of 125%, adding further strain to the already tense economic relationship between the two countries.
The U.S. Dollar Index (DXY), which measures the strength of the U.S. dollar against a basket of other major currencies, has dropped below the 100 threshold for the first time since April 2022. The index has lost more than 10% from its recent high of 110, now sitting at its lowest level in three years.
This decline in the dollar comes amid shifting investor sentiment away from U.S. assets, fueled by the escalating trade tensions and growing uncertainty in global markets. As highlighted by CoinDesk in January, the DXY’s pattern this year mirrors trends observed during President Trump’s first term, a trend that seems to be playing out once again.
Just before press time, China confirmed the tariff increase, raising the levy from 84% to 125%, signaling that the trade dispute is far from resolution and further pressuring U.S. financial markets.
However, despite the turbulence in traditional markets, bitcoin (BTC) remains notably stable. The cryptocurrency continues to trade above $81,000, showing its resilience amid the dollar’s decline and global economic uncertainty. Bitcoin’s continued strength highlights its growing role as a safe haven asset in times of volatility.
