Cryptocurrency investors are once again on edge due to concerns over escalating global trade disputes potentially turning into war. As is often the case, President Trump’s bold statements stirred the pot, but things cooled down as regular work hours approached. However, at the time the article was prepared, U.S. officials were discussing that tangible steps would be taken this week, causing Bitcoin’s price to drop by a few hundred dollars.
Surprises Awaiting Cryptocurrencies
The U.S. Treasury Secretary Bessent and the U.S. Trade Representative Greer have made significant statements, suggesting new sanctions might be on the horizon this week. If the U.S. starts taking concrete actions, the tension between the two countries is likely to escalate further, which could drive cryptocurrencies‘ prices down. Although Bessent assures that they won’t shake the markets, he also implies that their course won’t change even if markets decline.
Highlights from U.S. Trade Representative Greer’s statements include:
“China’s export restrictions are an attempt to gain power in the global supply chain. China exerts economic pressure. The U.S. and its allies will not accept China’s restrictions.
China’s actions completely nullify the agreements made between the U.S. and China over the last six months.
China’s restrictions were drafted but not implemented. We expect China’s restrictions not to be enforced and for a return to prior agreements. We want to have the last word with China regarding rare earth elements.”
Treasury Secretary Bessent emphasized the significance of this week:
“We do not want to harm China, but to help it. China’s economy will suffer the most from economic pressure. After previous agreements with China, the flow of magnets was quite smooth. A series of meetings will be held this week regarding China’s restrictions. China wants to be an unreliable partner for the world, which we need to break.
In recent days, we had important discussions with the Chinese, and there will be more this week. Perhaps the Chinese Vice Minister of Commerce acted alone. A Chinese official said that agreeing to port shipping fees would cause global chaos from China.
We see why President Trump’s authority to impose tariffs during an emergency is so important due to China’s provocation. European allies should be willing to follow the tariffs imposed on Chinese goods related to Russia’s oil purchases.”
This week either China will begin to implement what it has officially put on the table as a threat, potentially wreaking havoc on the economy, or it will admit to bluffing and return to the terms of the last agreement with the U.S., progressing towards a longer-term tariff agreement next month. Given the lengthy meetings and Trump’s announcement that he will soon meet with Xi, if the Vice Minister of Commerce sabotaged the process, this could be an easily surmountable issue. Largely, many things will become clear this week. However, following the recent statements, Bitcoin has fallen back to $111,000.