Bitcoin Drops Below $104k As US China Trade War Escalates

US President Donald Trump has further escalated tensions in the ongoing trade war with China. His statement comes just after Treasury Secretary Scott Bessent revealed that talks between both countries have stalled. Bitcoin rose following the president’s statement. However, the flagship crypto is now trading below $104,000, sparking a bearish sentiment.

Bitcoin Drops Below $104k As Donald Trump Calls Out China

In a Truth Social post, the US president stated that the bad news is that China has, perhaps not “surprisingly” to some, totally violated its agreement with his country. He added that “so much for being Mr Nice Guy.” The BTC price touched the $106,000 mark following his statement. However, Bitcoin has now dropped below the $104,000 mark and risks dropping lower with the trade remarks sparking a bearish sentiment.

As CoinGape reported earlier today, the US-China trade war had escalated after Bessent confirmed that trade talks have stalled. Bitcoin dropped below $105,000 following his statement, while altcoins also witnessed a sharp correction.

Now, Donald Trump’s statement threatens to put the crypto market at risk again. In his statement, the president remarked that two weeks ago, China was in “grave economic danger,” just before they reached this temporary deal.

He claimed that the very high tariffs he set made it virtually impossible for China to trade into the US marketplace, which is by far the “number one” in the world. Trump added that he saw what was happening and didn’t like it, which was why he made a “fast deal” with China to save them from what he thought was going to be a bad situation.

Bitcoin critic and renowned economist Peter Schiff criticized Trump’s statement, highlighting the fact that the president said the deal was to help China and not the American people. He added that if indeed China is violating the agreement, then it is the US economy that will be “devastated.”

Donald Trump boldly claimed that, thanks to the deal, everything quickly stabilized and China returned to business as usual. Everybody was happy, but then they went ahead to violate the trade deal.

Has The Trade War Lost Its Effect?

In another X post, The Kobeissi Letter raised the possibility that the trade war has lost its shock effect. They stated that it is quite remarkable that the stock market futures are down less than -0.3% despite Donald Trump effectively saying that the US-China trade deal is not working.

The platform added that in April, the S&P 500 would be down -5% on this headline, coupled with Greer’s statement. In a CNBC interview, US Trade Representative Jamieson Greer, who negotiated the current deal with China alongside Bessent, stated that China’s behavior is “completely unacceptable,” and that the US is concerned with the country’s non-compliance with the trade agreement.

It is worth mentioning that the Bitcoin price had dropped to as low as $76,000 back in April when Trump first announced the reciprocal tariffs.

However, the flagship crypto has since then managed to surge to a new all-time high (ATH) of $111,900 amid several developments and twists in the ongoing trade war. Bitcoin also barely dropped yesterday when the US Federal Appeals Court paused the US Trade Court’s ruling against the Trump tariffs.

The US Next Move Against China

According to a CNN report, Donald Trump is currently not considering re-imposing the 145% tariffs on China, even if they continue to violate the trade deal agreed upon in Switzerland earlier this month.

However, this president’s economic officials have told him that there are other tools that they can use to “hurt China,” if the country continues not to comply with the trade deal. The US appears to be already making plans to utilize these tools, as Bloomberg reported that the Trump administration is planning broader restrictions on China’s tech sector through new regulations.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.