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Crypto Market Stumbles as China Retaliates Against U.S. With New

The cryptocurrency market experienced a significant shock early Tuesday as a reaction to China’s announced retaliatory measures against the United States. These measures included a probe into tech giant Google and new levies on American goods. The announcement comes on the heels of a global market rout that saw more than $2.2 billion in liquidations due to investor uncertainties sparked by tariffs from the U.S.

The top 10 cryptocurrencies, excluding stablecoins, have all reacted negatively to the news. Dogecoin led the losses with a 5.8% drop, closely followed by XRP which fell by 5.1%. Bitcoin, the leading cryptocurrency by market value, showed relative resilience, dropping a modest 1.3% to a value of $98,934, according to data from CoinGecko.

These market movements follow reports from several Asia media outlets, including the South China Morning Post, which stated that Beijing had announced tariffs on U.S. goods ranging from 10% to 15%. Bloomberg further reported that Beijing will impose 15% levies on coal and liquefied natural gas imports, alongside 10% tariffs on oil and agricultural equipment from America, with immediate effect.

The NASDAQ 100 futures did not escape the repercussions either, dropping 1.7% on the day, 8 hours before U.S. markets were set to open. By late afternoon, futures had slightly pared losses but remained down by 1.2% for the day, according to data from Yahoo Finance.

Commodities also felt the pressure with natural gas dropping sharply by 2% and crude oil declining by 1.74%. In contrast, copper stood out as the lone gainer among major commodities, registering a modest 0.35% increase.

In a move that further escalates the tension between the two economic giants, China’s State Administration for Market Regulation launched an antitrust investigation into Google moments after the U.S. tariffs took effect. This development was reported separately by Bloomberg.

As the situation between the U.S and China continues to evolve, it is clear that the ripple effects are being felt across various sectors, including the volatile cryptocurrency market. These developments serve as a stark reminder of the interconnectedness of global economies and the potential for geopolitical events to trigger significant market reactions.

This is a developing story. We will continue to monitor the situation and provide updates as more information becomes available.

Edited by Sebastian Sinclair.