The crypto market closed off the Monday session with a recovery from lower prices achieved earlier in the day. These lower prices were caused by a market reaction towards the US-imposed tariffs on Mexico, Canada and China. BTC for instance closed the day above the $101,000 while XRP recovered to around $2.68.
However, earlier today (Feb. 4, 2025), news that China will impose tariffs on US imports surfaced. WatcherGuru, a crypto updates X page, shared that China is set to impose 10-15% tariffs on US oil, agricultural equipment, coal, and LNG. Following the news, the crypto market has reached with prices dipping from yesterday’s recovery.
JUST IN: 🇨🇳🇺🇸 China to impose 10-15% tariffs on US oil, agricultural equipment, coal, and LNG.
— Watcher.Guru (@WatcherGuru) February 4, 2025
Chinese Tariffs on Some US Products; Details
Following the US 10% tariff imposition on Chinese products import, China has responded by issuing what can be considered a “counter-tariff.” The recent move by Chinese policy makers is aimed at pushing the US president Donald Trump into talks that could prevent the potential Trade War from happening.
The additional tariffs by China will apply to about $20 billion of annual imports. However, according to a post by Reuters, Capital Economics’ research showed that over $450 billion worth of Chinese goods will be subjected to the US tariff that kicked off earlier today.
Capital Economics’ head of China Economics, Julian Evans-Pritchard, also confirmed that China’s “measures are fairly modest, at least relative to US moves, and have been calibrated to send a message to the US.” Nonetheless, China risks a Trade War with the US which could affect the crypto market in a significant manner.
BTC and XRP Dip After China’s Tariff on US Goods
Bitcoin’s price has gone down today after recovering to above $101,000 as President Donald Trump put a pause on Mexico and Canada tariffs. However, the coin experienced a slight decline as China’s tariff on US oil, agricultural equipment, coal, and LNG surfaced.
The data on Coinmarketcap shows that BTC is trading at $98,829.15 during the time of writing. Despite being below the $100K mark, the price shows a 5.39% increase in the day.
Trading activity of Bitcoin has also slowed down as indicated by the dropping trading volume. The volume stands at 83.22 Billion depicting a 12.31% plunge in the last 24 hours. BTC also has a market capitalization of $1.95 Trillion.
Besides Bitcoin, XRP has also reacted to the new Chinese tariff. This coin is trading at $2.53 and shows a 13.44% surge in the day. The trading volume for XRP has also dropped similar to that of Bitcoin.
XRP has had a trading volume of $22.42 over the last 24 hours. This marks a 25.24% decline in the same period. The XRP token currently has a market capitalization of $145.98 Billion.
On the outlook, the price chart of Bitcoin and that of Ripple show a similar trend. If the US and China decide to put a pause on the tariffs to prevent a Trade War, the crypto market will recover fully. US President Donald Trump already put a pause on the tariffs imposed on Mexico and Canada to allow for discussions between the governments.
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