Key Points:

• China has imposed retaliatory tariffs on all imports from the U.S., affecting global market sentiment.
• Bitcoin has decreased by $1,600 to a value of $83,000 after peaking at $84,600.
• Major indices such as S&P 500 and Nasdaq faced declines exceeding 2% amid rising trade tensions.

Risk sentiment was dampened on Friday during European trading hours when China announced tariffs targeting all U.S. goods in response to increased duties implemented earlier by the U.S. administration, raising them to 54%. As a result, Bitcoin, recognized as the leading cryptocurrency by market capitalization, saw a drop of $1,600, settling at $83,000 according to CoinDesk data. Other cryptocurrencies, including XRP, Ethereum, Solana, and Dogecoin, also witnessed reductions in their respective values following initial gains.

Futures linked to the S&P 500 and Nasdaq indexes similarly fell over 2% as global trade tensions escalated.

“China’s response is not only negative for the U.S. but it is also impacting the global outlook,” noted analyst Justin Low in a market review.