Bitcoin In Free Fall After The 104% Shock Inflicted On China!

The trade war orchestrated by Donald Trump has just reached an unprecedented level, with record tariffs of 104% imposed on Chinese products. This sudden, almost surreal escalation has taken the crypto markets by surprise, immediately plunging Bitcoin into a downward spiral. But is this drop sustainable or merely a hidden opportunity?

A trade war at 104%, the drop that overflows the market

The United States has just inflicted on China a historic customs tariff of 104%, in retaliation for the persistent maintenance of Chinese taxes on American products. This explosive decision by Trump dangerously amplifies trade tensions, delivering a severe blow to global economic confidence. Immediate result: financial and crypto markets reacted violently, leading to a rapid decline in prices, with Bitcoin at the forefront.

In this tense context, Bitcoin has dropped to nearly $76,800, a loss of 2.1%, while Ethereum, XRP, and even the popular Dogecoin followed suit.

This decline is accompanied by increased volatility: more than 100,000 traders have seen their positions liquidated, accumulating losses exceeding $300 million in 24 hours. Large investors, for their part, are nervously fidgeting, massively increasing their trades.

According to technical analysts, the situation could worsen in the short term. Doctor Profit, known for his skepticism, anticipates a severe correction of Bitcoin towards a strategic zone between $58,000 and $68,000.

On the contrary, some like Javon Marks remain optimistic, reminding that current technical indicators, although alarming, have often preceded significant rebounds in Bitcoin towards historical highs.

Hidden opportunity or sustainable drop for Bitcoin?

Paradoxically, this trade storm could eventually benefit Bitcoin. As the American stock market panics, seeing the S&P 500 collapse by nearly 15% in a few days, investors are desperately searching for safe havens.

Historically, in times of major economic uncertainty, Bitcoin presents itself as an attractive alternative to traditional monetary instability.

Financial problems in the United States are worsening, increasing public debt and gradually weakening the US dollar.

In response, interest rates on Treasury bonds have surged, illustrating the extreme nervousness of investors. This context could encourage them to favor Bitcoin as a hedge asset against potential inflation, thus strengthening its demand in the medium term.

Michael Gapen, an economist at Morgan Stanley, warns that the US Federal Reserve finds itself trapped: maintaining high rates is necessary to combat inflation, but this risks precipitating a recession.

In this dilemma, Bitcoin could paradoxically emerge as a reassuring escape for many investors concerned about the imminent devaluation of fiat currencies.

Thus, despite the brutal drop provoked by tensions between Trump and China, Bitcoin retains its attractive long-term potential. If negotiations fail and the global economy plunges into a deep recession, the digital asset could very well become the unexpected big winner despite a likely sale by Michael Saylor.