Bitcoin Trades Sideways as US – China Trade War Commences
Markets and Prices
Frederick Munawa
6 minutes ago
Bitcoin Trades Sideways as US – China Trade War Commences
Both traditional assets and the leading cryptocurrency seem to be trading mostly sideways in the midst of economic uncertainty as the world’s two largest economies duke it out.
Bitcoin Trades Sideways as US – China Trade War Commences
BTC Stalls Amid Escalating U.S.-China Trade Tensions
After President Donald Trump slapped a 104% tariff on China, what one analyst characterized as “doubling down on dumb,” the communist state retaliated with a reciprocal 84% levy on all incoming U.S. imports, but bitcoin barely reacted.
Overview of Market Metrics
The digital asset is currently trading at $77,411.52, marking a 1.37% drop over the past 24 hours and extending its weekly losses to 10.47%, according to Coinmarketcap. Prices fluctuated between $74,589.67 and $78,486.21 in the past day, showing some signs of volatility as investors reacted to market uncertainty.
Bitcoin Trades Sideways as U.S. – China Trade War Commences
( BTC price / Trading View)
Despite the small price decline, trading volume surged by 22.90% over the last 24 hours to $62.60 billion, signaling renewed interest among traders, potentially driven by bargain hunting or short-term positioning. However, the increased activity did not translate into bullish momentum, as bitcoin’s market capitalization dipped by 1.19% to $1.53 trillion. BTC’s market dominance remained steady, inching up 0.01% to 63.35%, reflecting the ongoing weakness across the broader crypto market.
Bitcoin Trades Sideways as U.S. – China Trade War Commences
( BTC dominance / Trading View)
In derivatives, bitcoin futures open interest rose 1.64% to $51.44 billion, suggesting that traders are still actively speculating despite the price drop. Liquidation data from Coinglass shows $2.43 million in total liquidations, with $1.80 million from long positions, indicating that a modest number of bullish traders were caught on the wrong side of the move. Meanwhile, short traders were liquidated to the tune of $633,170.
When Markets Say ‘Tank,’ Bitcoin Asks ‘How Low?’
Despite China’s trade spat with the U.S., at the time of reporting, the S&P 500 is up slightly by 0.88%, the Dow has barely budged, increasing by 0.48%, and the Nasdaq had a decent uptick of 1.89%.
But crypto markets continue to bleed, down 2.21% over 24 hours to a market capitalization of $2.46 trillion. The sideways movement seen in traditional markets appears to have carried over to the price of bitcoin. After all, BTC has a 0.66 thirty-day rolling correlation with the stock market according to crypto research platform Newhedge.
Bitcoin Trades Sideways as U.S. – China Trade War Commences
(30-day rolling correlation of 0.66 between bitcoin price and the S&P 500 index / Newhedge)
Based on such a relationship, the cryptocurrency will likely react similarly to traditional assets, at least in the near term.
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