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coinpedia 2025-02-05 11:46:41

US Postal Service Halts China Shipments: What It Means for the Crypto Market

US Postal Service Halts China Shipments: What It Means for the Crypto Market

The post US Postal Service Halts China Shipments: What It Means for the Crypto Market appeared first on Coinpedia Fintech News The increasing fear that has been driving the US market, since President Donald Trump focused on Tariff trade wars to help deliver on his campaign promises, has trickled down to the crypto market. The Bitcoin’s fear and greed index has dropped from over 70 percent, denoting greed, to around 50 percent, suggesting rising fear of further capitulation ahead. As Coinpedia reported, Bitcoin price faces a potential drop to the support level of around $91k again after being rejected above $102k in the last two days. With the altcoin industry already showing a higher positive correlation with Bitcoin’s price action, it is safe to assume that the entire crypto market faces further short-term weakening. US Postal Service Disrupts Parcel Delivery from China As the Trump administration seeks to counter drug trafficking from China to the United States, the U.S. Postal Service announced it will temporarily suspend international package acceptance from China and Hong Kong posts, effective February 4, 2025. However, the US Postal Service will continue to enable the flow of letters and flats from China and Hong Kong. Impact on the Crypto Market The US Postal Service has been a major enabler of business expansion between China and the United States, more so in the e-commerce sector, during the past few years. In 2024, there were 4 million packages worth less than $800 per day from China. The latest temporary suspension of international package acceptance from China and Hong Kong will heavily impact e-commerce giants led by Shein and Temu. Already, the use of digital assets in the China-US trade had gained significant momentum. Moreover, the methods of payment between merchants and customers of the two nations include PayPal, Visa, Apple Pay, MasterCard, and Google Pay, among others, which have heavily adopted digital assets.

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