US-China AI War Puts 'Cold Water' on Bitcoin's $80,000 Breakthrough Rally

▲ Bitcoin (BTC), USA, China/AI generated image

As the conflict between the United States and China over artificial intelligence (AI) technology intensifies, an alarm has been raised on Bitcoin's (BTC) path to reclaim the $80,000 mark.

According to BeInCrypto on April 23 (local time), Bitcoin is trading around the $78,000 level, but US-China geopolitical tensions are dampening risk asset investment sentiment, preventing it from breaking past the $80,000 resistance. The White House accused Chinese companies of stealing US AI intellectual property on an industrial scale and announced strong measures to protect technology.

Michael Kratsios, Director of the White House Office of Science and Technology Policy (OSTP), stated that "foreign entities based in China are using tens of thousands of proxy accounts and jailbreaking techniques to replicate leading US AI systems." Kratsios emphasized that information sharing would be enhanced and measures to ensure accountability would be explored to protect American innovative technology. This announcement comes weeks before the May summit between US President Donald Trump and Chinese President Xi Jinping, increasing market uncertainty.

Bitcoin's price also faces technical resistance. TradingView data shows that the $80,000 to $80,600 range has acted as strong overhead resistance throughout April. On-chain data analysis indicates that investors' realized price of $76,800 is limiting recent rebound attempts. However, in the derivatives market, $80,000 call options have recorded $1.78 billion in volume, indicating continued long-term breakout expectations.

Market experts analyze that while the AI dispute has no direct technical correlation with Bitcoin, the deepening US-China conflict curbs risk-taking sentiment across the broader cryptocurrency market. It is widely observed that market sentiment could reverse depending on the outcome of the US-China summit. Investors are watching to see if geopolitical variables will resolve, allowing Bitcoin to stably hold the psychological resistance level of $80,000.

The global tech hegemony war has become a key variable increasing volatility in the cryptocurrency market. Bitcoin continues to struggle towards the $80,000 mark, seeking direction amidst macroeconomic uncertainty. Investors are focusing on the impact that changes in US-China relations will have on the liquidity and price movements of the cryptocurrency market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*