Bitcoin surpassed $84,000 on Wednesday as the trade battle between the US and China intensified.
After its weekend retaliation, the US imposed a 245% tax on Chinese goods.
The global trade war has led China to sell many of its confiscated cryptocurrencies due to an economic slowdown.
Although China sold some of its stolen cryptocurrencies, Bitcoin (BTC) was barely affected on Wednesday. Following its weekend retaliation, the White House warned China that its exports to the US could face penalties of 245%.
Bitcoin holds $84,000 amid US-China tariffs.
Bitcoin held $84,000 on Wednesday despite increased volatility in financial markets due to concerns related to the US-China trade war.
China faces tariffs as high as 245%, including reciprocal tariffs of 125%, a 20% tax on fentanyl, and Section 301 tariffs on specific items ranging from 7.5% to 100%, according to the US administration. China responded by increasing its tax on US imports to 125% over the weekend.
The S&P 500 and the Nasdaq-100 fell by 2.24% and 3.04% after the announcement. Bitcoin's resilience to the news suggests a separation from stocks.
Messari analyst Dylan Bane told FXStreet that long-term tariffs could decouple Bitcoin from stocks.
"Ongoing tariffs could catalyze a structural economic shift, leading to a decoupling of Bitcoin from traditional assets as it gains recognition as an independent store of value," he said.
He noted that tariffs hinder global trade and harm the US dollar's international reserve position. Thus, prolonged economic slowdowns could turn Bitcoin into a long-term store of wealth.
"The broader economic uncertainty and institutional distrust accompanying such a shift could also spur greater interest in cryptocurrencies more generally as a financial infrastructure not reliant on any single government or monetary authority," he added.
Reuters reported that China sold its confiscated crypto assets after an economic slowdown.
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