Crypto Daybook Americas: Bitcoin Stays Resilient Despite Escalation in U.S.-China Trade Tensions
A look at the crypto market's response as trade tensions between the U.S. and China rise, with Bitcoin showing stability amidst global financial shifts.
What to know:
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Market Overview: As U.S.-China trade tensions escalate with China increasing tariffs from 84% to 125%, Bitcoin and the overall cryptocurrency market remain largely unaffected.
Bitcoin has only seen a minor decline of 0.15% over the last day, now trading above $82,000. The broader crypto market has exhibited stable performance.
In contrast, other assets are experiencing notable shifts. Gold has hit a record high of $3,227.5, making Tether’s XAUT, a gold-backed cryptocurrency, the top-performing digital asset. The U.S. Dollar Index has dipped below 100 following its most significant drop since 2022, while 10-year Treasury yields have risen, nearing 4.4%.
“The question of a potential dollar confidence crisis has now been definitively answered — we are experiencing one in full force,” ING strategists, including Francesco Pesole, stated in a report.
Translation: The question of whether there is a burgeoning crisis of confidence in the dollar has been clearly answered — it is indeed happening in full force.
Surprisingly, inflation in the U.S. has decreased, which might lead the Federal Reserve to consider cutting rates in the upcoming meetings. However, the market may view lower inflation as a sign of decreasing demand, exacerbating the current crisis.
Investors in Bitcoin reportedly faced losses of up to $250 million during recent price drops, according to Glassnode.
What to Watch
- Crypto Events:
- April 11, 1 p.m.: U.S. SEC Crypto Task Force Roundtable on Tailoring Regulation for Crypto Trading.
- April 17: EigenLayer (EIGEN) activates slashing on Ethereum, imposing penalties for operator misconduct.
- Macro Events:
- April 11, 8:30 a.m.: Release of U.S. producer price inflation data for March.
- April 11, 12:01 p.m.: Increase of tariffs on U.S. imports by China.
- April 14: Salvadoran President Nayib Bukele to meet with U.S. President Donald Trump for an official working visit.
Note: Keep an eye on developments in the market, especially given the ongoing volatility induced by international trade issues.
