Bitcoin, the leading cryptocurrency by market capitalization, continued its downward trend on Friday as tensions between the United States and China intensified. President Donald Trump announced plans to increase tariffs on Chinese exports to the U.S. to a staggering 100%, alongside new export controls on “any and all critical software.” This action is viewed as a response to China’s recent imposition of limits on the export of rare earth minerals, which are essential for technology production and various manufacturing sectors.
The escalation of this trade conflict significantly impacted global financial markets, leading the benchmark S&P 500 Index to drop by more than 2%. In this volatile climate, Bitcoin was recorded at $104,782, experiencing an 8.4% decrease by 17:20 ET (2120 GMT). Similarly, Ethereum, the second-largest cryptocurrency, also faced a decline, falling 5.8% to $3,637 at 17:21 ET.
Market analysts are closely monitoring these developments, as the ongoing trade tensions could have broader implications for the cryptocurrency market, which is often sensitive to macroeconomic factors.
