The trade dispute between the US and China has intensified, causing uncertainty in global markets, including cryptocurrencies. China has imposed new tariffs ranging from 10% to 15% on US goods, raising concerns among investors. However, analysts suggest that the actual impact of these tariffs may be overstated.
China’s tariffs include a 10% tax on US crude oil and farm equipment and a 15% tax on coal and liquefied natural gas (LNG). Although this news initially unsettled the market, experts point out that these goods make up a small fraction of China’s total imports from the US. In fact, the US only supplies about 6% of China’s LNG and coal, limiting the direct effects of the tariffs.
Despite a significant market drop on Monday, which erased billions in value, some analysts view Bitcoin as a safe haven against geopolitical instability. Many investors believe that Bitcoin thrives during economic uncertainty and inflation. Financial expert Robert Kiyosaki sees the recent price drop as a chance to buy, reinforcing Bitcoin’s reputation as a reliable store of value during crises.
The ongoing trade tensions have also impacted Ethereum, with predictions of a potential price decline if the situation worsens. Nevertheless, long-term investors remain hopeful. Strategic traders see market fluctuations as opportunities rather than reasons to panic.
In a contrasting development, a temporary agreement between the US, Canada, and Mexico has eased some investor worries. The US has delayed tariffs on goods from Canada and Mexico for 30 days in exchange for stricter border controls.
