Bitcoin (BTC) Struggles to Reclaim $100K as China Announces Retaliatory Tariffs on US Goods

Bitcoin BTC/USD is trading around $99200 on Tuesday, following China's announcement of retaliatory tariffs on certain U.S. goods.

Bitcoin (CRYPTO: BTC) price today, January 7, is showing a slight decrease from Monday’s high, currently trading around $99,200 as China announces retaliatory tariffs on certain U.S. goods.

China announced new tariffs on certain U.S. imports on Tuesday in response to recent U.S. trade measures. Beginning Feb. 10, China will impose:

Additional tariffs ranging from 5% to 25% on 5,140 U.S. products, including crude oil, agricultural goods and aircraft

An increase in existing tariffs on 1,078 U.S. products, including soybeans and electric vehicles

The Chinese Ministry of Commerce also announced new export restrictions on tungsten, tellurium, bismuth, molybdenum and indium due to national security concerns.

These critical materials are used in various industrial and technological applications.

China has criticized the U.S. tariffs, stating that “The U.S.’ unilateral imposition of tariffs severely violates the rules of the World Trade Organization.”

Bitcoin’s price has been closely tied to geopolitical events over the last two days.

“A huge turnaround in sentiment yesterday on the back of delayed Mexican and Canadian tariffs saw Bitcoin trade from a low of $91,300 to a high of $102,500,” Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered, said in a note sent to Benzinga.

Although Bitcoin briefly surged past the $100,000 mark on Monday following U.S. President Donald Trump's temporary pause on new tariffs for Mexico and Canada, its momentum was interrupted as trade tensions with China escalated.

Kendrick noted that Bitcoin’s price action remains in a consolidation phase as traders await clearer signals from the U.S. bond market and broader economic indicators.

The overall cryptocurrency market has gained 3.3% in the last 24 hours, recovering from recent losses, but sustained demand remains to be seen.

“While Monday's rebound was strong, market enthusiasm appears to be fading, with the market losing ground over the past few hours,” said Alex Kuptsikevich, Chief Market Analyst at FxPro.

“It seems that while the market has not gone into all-out sell-off mode, a reason for sustained buying is hard to find as threats of surprise tariffs persist.”

Ethereum (CRYPTO: ETH) is currently trading near $2,700, having dropped below its 200-day moving average, a key technical indicator.

XRP (CRYPTO: XRP) is trading around $2.60, down from Monday’s close of $2.78.

According to Kuptsikevich, Ethereum often signals broader market trends, and its weakness suggests continued investor caution.

“Despite recent swings, analysts emphasize Bitcoin’s resilience in the face of macroeconomic challenges,” the note adds.

“Volatility and resilience are two sides of the same coin in the crypto market. Macroeconomic factors and investor confidence play a key role in shaping the market,” said Avinash Shekhar, co-founder and CEO of Pi42.

“The recent rebound in the crypto market highlights its growing correlation with broader economic trends.”