Cryptocurrencies Weather China's Trade Storm
Bitcoin, Ethereum, XRP, and Dogecoin Remain Relatively Unscathed Despite China's Reciprocal Tariffs
April 25, 2022 - The cryptocurrency market has largely shrugged off China's recent retaliatory tariffs on US goods, with major digital currencies like Bitcoin, Ethereum, XRP, and Dogecoin experiencing minimal volatility.
In response to the US imposing tariffs on Chinese goods, China slapped reciprocal tariffs on US exports, including agricultural products, aircraft, and automobiles. The move was seen as a tit-for-tat measure aimed at pressuring the US to reconsider its trade policies.
Despite the escalating trade tensions, the cryptocurrency market has remained surprisingly resilient. Bitcoin, the largest digital currency by market value, has held steady above the $40,000 mark, while Ethereum, the second-largest, has maintained its price above $3,000.
XRP, the third-largest cryptocurrency by market capitalization, has also remained relatively unaffected, trading around $0.80. Dogecoin, the popular meme-based cryptocurrency, has seen a slight dip to around $0.20, but its overall price action has been relatively flat.
Industry experts attribute the cryptocurrency market's stability to several factors. Firstly, the market has largely anticipated the trade tensions and has already priced in the risks. Secondly, the rise of decentralized finance (DeFi) and the increasing adoption of cryptocurrencies by institutional investors have helped to insulate the market from external shocks.
"China's retaliatory tariffs are just another example of the global economic uncertainty that we've been experiencing," said cryptocurrency analyst, Alex Krüger. "But the cryptocurrency market has shown remarkable resilience in the face of adversity, and we expect this trend to continue."
As the trade tensions continue to unfold, investors will be keeping a close eye on the cryptocurrency market to see if it can maintain its current stability. For now, the major digital currencies appear to be weathering the storm, and their prices are likely to remain relatively unaffected.