The US-China trade war has reignited, putting pressure on financial markets, including cryptocurrencies. Tensions escalated after China imposed new tariffs of up to 15% on US farm imports, including wheat, corn, and meat. An additional 10% tax was placed on other key exports such as soybeans, pork, seafood, and fruit, set to take effect on 10 March.

This latest move follows President Donald Trump's decision to double tariffs on Chinese goods to 20%, announced a day earlier. The US government also confirmed that tariffs on imports from Mexico and Canada would rise to 25%, causing a widespread downturn in risky assets.

Bitcoin (BTC), often seen as a hedge against economic instability, was not spared from the market sell-off. The leading cryptocurrency dropped by 2% on the day, trading near$84,200 at the time of writing, according to CoinDesk and TradingView data. Investors remain cautious as geopolitical tensions weigh on sentiment.