Will Bitcoin Maintain Its Strength Amid Tariff Changes?
The post Will Bitcoin Maintain Its Strength Amid Tariff Changes? appeared on BitcoinEthereumNews.com.
Recent adjustments to U.S. tariffs on China are causing ripples in global financial markets. Despite these shifts, Bitcoin continues to hold its ground, trading above the $85,000 mark. Positive sentiment in both the stock and cryptocurrency markets has emerged, fueled by recent tax exemptions. A decline in U.S. Treasury yields and encouraging on-chain metrics are also contributing to Bitcoin’s resilience, although uncertainties in the political and economic landscape are prompting caution among market participants. How Do U.S.-China Relations Influence Bitcoin?Is Bitcoin’s Recovery Sustainable? How Do U.S.-China Relations Influence Bitcoin? Is Bitcoin’s Recovery Sustainable? President Trump’s recent decision to suspend hefty tariffs for a limited period has led to a temporary uplift in market confidence. Exemptions on key electronics sparked a notable rise in technology stocks, with Bitcoin witnessing a significant rebound to $85,810, recovering nearly 13% from its recent low of $75,000. However, ongoing tensions between the U.S. and China, including plans for further tariffs, complicate the outlook for investors. The geopolitical climate remains tense, as both nations continue imposing sanctions on one another. Trump has indicated that a wide range of sectors will face tariffs, with semiconductor supply chains being particularly targeted. Additionally, China’s restrictive measures on rare earth exports signal that these tensions could escalate further. Bitcoin’s upward trend isn’t merely a reflection of macroeconomic factors; it’s also supported by positive developments in on-chain data. The ‘Realized Profit/Loss’ (NRPL) ratio has improved, indicating a strong basis for market growth. Additionally, there is a notable withdrawal of Bitcoin from exchanges, as many investors prefer to hold rather than liquidate their assets, suggesting a long-term investment strategy. The surge in large wallet holdings also points to growing confidence, with addresses containing ten or more BTC reaching record levels. Meanwhile, retail investors have leaned towards selling during recent price fluctuations. Notably,…
