US-China Trade War: Impact and Potential for Bitcoin
Trade tensions between the United States and China have become a central focus in global economic dynamics, creating significant impacts across various sectors, including the crypto market.
Escalation of the Trade War and Market Reactions
Quoting from Coinvestasi media, in early February 2025, U.S. President Donald Trump’s administration announced the implementation of new import tariffs targeting several countries, including China, Canada, and Mexico.
This policy triggered uncertainty in the global financial markets, directly affecting risk assets like Bitcoin.
Bitcoin experienced a sharp drop from around US$100,000 to US$92,800, before eventually stabilizing at around US$98,200.
Analyst Predictions: Risks and Opportunities for Bitcoin
Analysts warn that further escalation in the trade war could expose Bitcoin to deeper corrections, potentially falling below US$90,000.
Ryan Lee, Chief Analyst at Bitget Research, highlighted that trade tensions could increase volatility in risk assets such as Bitcoin.
However, in the long term, this situation may also drive investors to seek alternative assets as a hedge against inflation and currency depreciation.
Bitcoin as a Safe Haven Asset Amid Uncertainty
Although selling pressure has risen due to economic uncertainty, some analysts see potential in Bitcoin as a safe haven asset.
James Wo, CEO of DFG, noted that a prolonged trade war could accelerate the weakening of the U.S. dollar and fuel inflation, which in turn could boost demand for assets like Bitcoin.
However, he also cautioned that in the short term, the crypto market may continue to face high volatility.
Critical Levels and Recovery Outlook
To avoid further declines, Bitcoin needs to maintain support above the US$97,000 level.
A drop below this level could trigger massive liquidations and increase selling pressure.
However, if global trade conditions improve or supportive policy interventions occur, Bitcoin may recover and return to a positive trend.
Conclusion
The trade war between the U.S. and China has significant implications for the crypto market, particularly Bitcoin.
While the risk of price decline remains, the potential for Bitcoin as a hedge asset amid economic uncertainty continues to be a consideration for investors.
Monitoring trade policy developments and market responses will be key to making informed investment decisions.
