Global Markets in Turmoil as China-US Trade Tensions Reach Boiling Point

Bitcoin Sinks Back Below $80,000 as Markets Shift Focus to Potential China Conflict

April 10, 2025 - Bitcoin's price has dropped below the $80,000 mark for the first time in weeks, as market sentiment shifts in response to growing concerns over a potential conflict between China and Taiwan.

The world's largest cryptocurrency by market capitalization fell as low as $78,500 earlier today, according to CoinDesk's Bitcoin Price Index, before recovering slightly to trade around $79,200 at press time.

The decline comes as investors increasingly turn their attention to the escalating tensions between China and Taiwan, which have sparked concerns over a potential military conflict. The situation has also led to a spike in gold prices, as investors seek safe-haven assets amid the uncertainty.

"We're seeing a classic case of risk-off sentiment taking hold," said Michael McCarthy, chief market strategist at CMC Markets. "Investors are getting nervous about the potential for a conflict in the region, and that's causing them to seek safer assets like gold and the US dollar."

The shift in market sentiment has also had an impact on other major cryptocurrencies, with Ethereum and Ripple both falling by around 2-3% over the past 24 hours.

Despite the decline, many analysts remain bullish on the long-term prospects for bitcoin, citing the growing institutional interest in the asset class and the ongoing development of the cryptocurrency's underlying technology.

"We still believe that bitcoin is a store of value and a hedge against inflation, and we don't think this short-term volatility will change our long-term outlook," said Katie Stockton, a partner at Fairlead Strategies. "The key is to keep a longer-term perspective and not get caught up in the day-to-day noise."