Bitcoin ($BTC) has again slumped below the $80,000 spot, as of Thursday, losing another 4% of the value. As per the ongoing scenario, this Bitcoin ($BTC) dip reportedly resulted from the escalating tensions in the tariff war on trade between the United States and China. The fears ignited by an abrupt tariff policy shift in the U.S. has also led the Nasdaq Composite to drop by 5.5%.
Bitcoin and Nasdaq Experience Stunning Decline as U.S.-China Intensify Trade Tensions
Crypto Market shows Bitcoin and Nasdaq’s massive sell-offs have occurred following a historic price rally in the financial market. Nonetheless, the drastic shift in the tariffs policy has reversed the overall investor sentiment when it comes to trading. The turmoil started when the White House released a clarification that increased the tariff on Chinese imported products from 125% to the new 145%. The U.S. President Donald Trump disclosed this in his statement yesterday.
This enormous tariff increase has added stress, imposing more pressure on the already stressed U.S.-China economic relationship. Hence, amid the intensified trade war, insider sources express caution concerning longer-term consequences. Specifically, Bitcoin ($BTC) witnessed another shockwave after having previously surged by more than 8%. This overall downturn points toward the potential reshaping of the overall investor sentiment. Apart from that, the development also highlights the growing concerns dealing with financial inflation.
Worsening Economic Relationship between U.S. and China Points toward More Uncertainty
According to the new market data, China has also responded to the aggressive tariff strike by Trump. Thus, the country has asserted its endeavors to minimize American imports. These tit-for-tat measures are severely impacting the investors, further increasing the volatility as well as likely retaliation, particularly in the crypto market. Moreover, Bitcoin’s plunge has mounted concerns among the crypto community, indicating the likelihood of further uncertainty.
