The post Crypto Market in Turmoil! U.S.-China Trade War Triggers Wild Price Swings appeared first on Coinpedia Fintech News XRP and Dogecoin surged 20% before dipping again as the U.S.-China trade war rattled the crypto market. Bitcoin briefly soared past $100K after President Trump paused tariffs on Mexico and Canada but dropped to $98K when China struck back with fresh tariffs on U.S. imports. Despite being decentralized, crypto still reacts like traditional financial markets. Many believe this isn’t just about trade—it’s a battle over supply chains, financial dominance, and economic control. If the U.S. keeps escalating, China may accelerate de-dollarization, push its central bank digital currency (CBDC), and tighten its hold on critical industries. XRP and Dogecoin Surged 20%, Then Dipped as China Tariffs Dent Crypto Rebound Crypto majors zoomed as much as 20%, before reversing, in the past 24 hours as a buy-the-dip strategy following Monday’s $2.2 billion turned profitable for risk-takers, although gains were wiped as … pic.twitter.com/KBY9XBSKne — TetherAccess (@tetheraccessvip) February 4, 2025 XRP, Dogecoin, and the Global Trade War Crypto traders took advantage of a “buy-the-dip” opportunity after Monday’s $2.2 billion liquidation, causing XRP and Dogecoin to rise sharply. However, when China retaliated with new tariffs, gains disappeared just as fast. XRP, Dogecoin, Solana (SOL), and Cardano (ADA) managed to hold onto a 3% increase, while Bitcoin (BTC) and Ethereum (ETH) were up about 4%, but volatility remains high. According to Ben El-Baz, Managing Director of HashKey Global, the trade war could hurt investor sentiment, slowing the crypto bull market. However, he believes the damage could be controlled if the U.S. introduces more crypto-friendly policies. How Bad Could It Get? Analysts are divided on how long this market chaos will last. Min Jung from Prestro Research explained that despite Bitcoin’s reputation as “digital gold,” it still behaves like a risky asset. This means China’s tariffs impact it just like stocks, leading to short-term pressure. To be precise, Jung called this crash an overreaction, but traders should be prepared for the worst. The big question now is whether this is just a negotiation tactic or the beginning of a long economic war. If tensions rise further, crypto markets could suffer extended pullbacks. Will XRP & Dogecoin Recover? For now, XRP and Dogecoin remain at the mercy of global economic tensions. According to Crypto analyst CasiTrades , XRP’s dramatic plunge to $1.77 after a weekend liquidation event wiped out key support levels. Currently, in a Wave 4 recovery, XRP is testing resistance at $2.49 and $2.67. If it breaks above $2.67, a strong rally could follow, but failure may lead to another drop to $1.53. CasiTrades believes that once the bottom is confirmed, XRP could see an explosive rally beyond its all-time high of $3.80. On the other side, Dogecoin’s recent price action also shows signs of a potential rebound, bouncing off key support near the 200-day SMA at $0.2265. With the RSI approaching oversold levels, DOGE could be setting up for a short-term recovery if buyers step in. If the trade war drags on, crypto investors may stay cautious, making price swings more dramatic. However, this crisis also highlights the need for decentralized financial alternatives. XRP’s fast transactions and Dogecoin’s strong community support could help them stay relevant.
