After a short-lived recovery, the crypto market is once again under pressure, with Bitcoin falling from $106,000 to just above $104,000 amid growing geopolitical risks. The trigger: a renewed tech policy shift from the U.S. targeting China, sparking concerns over economic retaliation and broader market instability.
Despite recent diplomatic engagements in Geneva and Paris aimed at mending ties with Beijing, Washington’s latest move has added fresh uncertainty to an already shaky environment. Analysts at Dey There caution that the policy development could prolong bearish sentiment in the crypto space.
U.S. Targets China’s Chip Access—Again
In an announcement that took markets by surprise, the White House stated it was acting “without intent to escalate trade tensions” while simultaneously implementing new technology export restrictions on China. These restrictions would curb U.S. tech access for chip manufacturing facilities located in mainland China.
According to Jeffrey Kessler, the senior official overseeing export controls at the U.S. Commerce Department, exemptions granted to three major chip producers are now under review and may be revoked. Kessler’s remarks signaled a return to Trump-era policies aimed at restricting critical technology transfers to rival nations.
Market Fears and Crypto Volatility
The move comes at a sensitive time when the U.S. is already entangled in rising tensions with Iran, a strategic ally of China. Now, with tech-sector trade friction reentering the spotlight, hopes for a long-term diplomatic resolution between the world’s two largest economies are fading fast.
For crypto investors, this is yet another risk factor. Rising trade tensions increase dollar volatility, destabilize global sentiment, and reduce appetite for speculative assets. Historically, crypto has reacted sharply to any major escalation in U.S.-China policy standoffs—and this week has been no different.
While no immediate collapse followed the news, fear has clearly returned. Some experts warn that if China retaliates or imposes its own restrictions, Bitcoin and other altcoins could face deeper corrections.
Dey There Insight: Prepare for a Long Summer
As Dey There analysts point out, markets are entering a period of prolonged geopolitical instability. This doesn’t necessarily mean a crypto crash is imminent—but it does signal more choppy trading, cautious institutional behavior, and increased capital outflows from high-risk sectors.
If no resolution is found in the coming weeks—and especially if tech trade tensions worsen—expectations for a crypto rebound may need to be postponed.
References
U.S. Department of Commerce – Export Control Updates
https://www.commerce.govBloomberg – U.S. Restricts Chip Access to China (June 2025)
https://www.bloomberg.comReuters – U.S.-China Trade Talks Report
https://www.reuters.comCNBC – Bitcoin Price and Market Sentiment Tracker
https://www.cnbc.com/cryptocurrency
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