Crypto Daybook Americas: Bitcoin Downside Risks Linger Despite China’s Readiness for Talks
Markets remain squarely focused on the U.S.-China trade tussle and headlines from both countries.
Bitcoin fell below $75,000 during the Asian morning, with S&P 500 futures nursing a 2% loss after the U.S. lifted the total levy on the world’s second-largest economy to 104%. The Australian dollar, a China-sensitive commodity currency, fell to a five-year low of 0.5913 against the greenback and the volatile U.S. Treasury market threatened a USD liquidity squeeze.
Sentiment improved somewhat after China’s State Council Information Office released a white paper on the tensions that said Beijing is willing to communicate on issues and didn’t mention fresh retaliatory taxes on U.S. imports. It soured some hours later after the Ministry of Finance raised tariffs to 84% from 34%, sending BTC, which had rallied to around $77,000, back below $76,000.
In any case, the sustainability of the recovery was always under question as China’s comments beyond the headlines were tough and suggested the government was unlikely to blink any time soon. For instance, the document said China won’t be bullied and the U.S. will need to show respect and equality if it wants to resolve the problem. The country will take measures to safeguard its rights and interests, it said.
Besides, persistent volatility in bonds, triggered by the supposed unwinding of carry trades and fears of sticky inflation, could work against a sustained recovery in the risk assets. A growing number of observers, including economist Nouriel Roubini, say markets are too optimistic in pricing an aggressive Fed easing, and central bank support will come only after President Donald Trump tempers his rhetoric. Meanwhile, Bank of Japan Governor Kazuo Ueda said interest-rate hikes will continue if the economy improves as expected, adding the need to be alert to trade tensions.
In the broader crypto market, BlocScale, a launchpad to onboard projects and community-driven token introductions to XRP Ledger, continued to make waves, with strong uptake for the seed sale of its native token BLOC. “With over 35% of the seed sale allocation already claimed, BlocScale Launchpad is gaining significant traction from early-stage investors, developers, and XRP enthusiasts looking to be part of something groundbreaking,” it said.
The TRUMP token, associated with President Trump, traded at record lows near $7.5 in the wake of massive selling by whales early this week. It is now down 90% from its record high, with a $360 million unlock due later this month. Stay Alert!
BY: Omkar Godbole
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