Bitcoin, will it break through the tariff bomb threat and launch a new high rally?

▲ US, China, Bitcoin/ChatGPT generated image

Bitcoin (BTC) is showing rapid volatility, on the verge of breaking through $75,000 amidst geopolitical tensions entangled with the US-China conflict and Middle East variables.

According to CoinGaap, a cryptocurrency media outlet, on April 14 (local time), Bitcoin surged to $74,942 intraday as the Chinese government fully denied allegations of arms support to Iran and resisted US tariff pressure. The price surged immediately after US President Donald Trump warned of imposing a 50% tariff on countries supplying weapons to Iran. Chinese Foreign Ministry spokesperson Guo Jiakun refuted the related reports as fabricated and hinted at countermeasures.

US intelligence authorities raised the possibility of China providing air defense systems to Iran, and Trump stated, “I will immediately impose a 50% tariff on all goods coming from countries that supply military equipment to Iran.” If the US-China conflict escalates, the shock could spread throughout global financial markets. It is a similar tense situation to the one at the end of 2025 when the market capitalization of virtual assets decreased by $200 billion following a warning of 100% tariffs on Chinese products.

Within the market, a short squeeze stimulated the rise. Short positions worth approximately $89 million were liquidated, expanding buying pressure, and BlackRock's IBIT saw an inflow of $269 million in a single day. Gemini co-founder Cameron Winklevoss commented, “Unlike the view that Bitcoin was dead, it is now recording $74,000.”

However, caution signals are also appearing as the rise is not accompanied by sufficient trading volume. Michael Nadeau, founder of The DeFi Report, analyzed that the current trend is similar to the pattern seen before the 2022 decline. Monte Safieddine, Head of Market Research at Capital.com, diagnosed that global risk asset flows are being constrained by tensions in the Strait of Hormuz.

Bitcoin continues to show high volatility in an environment where geopolitical risks and fund inflows are acting simultaneously, and the struggle around key resistance levels is ongoing.

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