Bitcoin (BTC) is down slightly by 0.3% to
$83,205 this week, retreating from a high of $86,439 on Tuesday. The pullback
follows another escalation in the ongoing U.S.–China trade standoff, which
continues to generate volatility across global markets.
Despite U.S. President Donald Trump slashing
tariffs on Chinese electronics from 145% to 20%, China has not signalled a
willingness to compromise. Instead, Beijing has ordered domestic airlines to
halt purchases of Boeing aircraft—an economic blow that Washington has yet to
adequately counter. The U.S. response was rhetorical at best, with threats of
increasing tariffs on Chinese imports to 245%, heightening uncertainty.
These tit-for-tat measures underscore the
instability of the situation. While China appears to have found strategic
leverage, analysts believe its ability to sustain an intense tariff conflict is
limited. A negotiation window may open soon as both sides edge toward their
tactical limits. Trump, facing pressure at home and abroad, seems to be angling
for a compromise, while Beijing is demanding broader concessions.
Meanwhile, the fallout is spreading. Chipmaker
NVIDIA (NVDA) issued a warning that export restrictions to China could cost it
$5.5 billion, sending shares down 4.4% to $106.88 in premarket trading. The
broader tech and crypto markets are also reacting. Spot Bitcoin ETFs—IBIT
(BlackRock), FBTC (Fidelity), and GBTC (Grayscale)—saw a sharp $503.3 million
in outflows last week, likely driven by algorithmic trading amid the
geopolitical uncertainty.
Yet, despite the turbulence, Bitcoin remains
technically resilient. The coin is holding above key support at $80,000–82,000,
maintaining an upside trajectory. The Federal Reserve is another key factor in
play: Governor Christopher Waller recently suggested the central bank may need
to implement sharp rate cuts if Trump pursues aggressive tariff policies. This
dovish stance is broadly positive for crypto assets.
From a technical standpoint, Bitcoin has
broken above the resistance range of $81,000–82,000, setting its sights on the
next major zone at $89,000–91,000. A successful breakout from this level could
trigger a significant rally toward $150,000–200,000. However, for this bullish
scenario to materialise, a breakthrough in U.S.–China trade relations is
essential. If diplomacy fails, the path ahead could be rocky, with markets
caught in the crossfire of economic brinkmanship.