Bitcoin Remains Resilient Amid Escalating US-China Trade Tensions and Plummeting US Dollar

By Francisco Rodrigues (All times ET unless otherwise stated) Despite the intensifying trade war between the US and China, with China increasing tariffs on the US from 84% to 125% earlier today, the cryptocurrency market, including bitcoin (BTC), appears largely unaffected. Over the past 24 hours, bitcoin has experienced a minimal decline of 0.15%, and its recovery remains uninterrupted by China's recent actions. The cryptocurrency is currently trading above $82,000, while the broader crypto market, as measured by the CoinDesk 20 (CD20) index, remains stable with similar performance. In contrast, other assets have been significantly impacted. Gold has reached a new record high of $3,227.5, making Tether's XAUT, a gold-backed cryptocurrency, the top-performing digital asset. Meanwhile, the US Dollar Index (DXY) has dropped below 100, marking its largest decline since 2022. The yield on 10-year Treasuries continues to rise, now standing near 4.4%. According to a note by ING strategists, including Francesco Pesole, as reported by The Telegraph, 'the question of a potential dollar confidence crisis has now been definitively answered - we are experiencing one in full force.' Last month, US inflation decreased at the headline level, which may prompt the Federal Reserve to resume cutting rates at its next meeting. However, the market may interpret the lower figures as a sign of potentially waning demand, exacerbating the crisis. This 'confidence crisis' seems to be driving gains for all assets against the dollar, except for crypto. According to Glassnode, bitcoin investors realized losses of up to $250 million over 6-hour periods during the recent decline, which suggests 'early signs of seller exhaustion.' Key Developments to Watch: Upcoming Token Events: Conferences: Token Talk: By Shaurya Malwa and Oliver Knight Derivatives Positioning: Market Movements: Bitcoin Statistics: Technical Analysis: Crypto Equities: ETF Flows: Spot BTC ETFs: Spot ETH ETFs: Source: Farside Investors Overnight Flows: Chart of the Day: While You Were Sleeping: In the Ether