China Warns of Countermeasures as US Crypto Market Reacts to Strong Economic Data
The US cryptocurrency market faces heightened volatility as China's Ministry of Commerce threatens retaliatory measures against American policies. This geopolitical tension coincides with the release of unexpectedly robust US economic data, reducing expectations of near-term Federal Reserve easing.
Fourth-quarter GDP growth surged to 4.3%, significantly exceeding the 3.3% forecast, while the GDP price index jumped to 3.8%. However, durable goods orders disappointed at -2.2%, creating mixed signals for crypto investors monitoring macroeconomic trends.
China's explicit warning about protecting its companies from US restrictions on foreign UAVs suggests potential trade disruptions that could impact crypto liquidity flows. Market participants are closely watching whether these developments will trigger risk-off sentiment or drive capital toward decentralized assets as geopolitical hedges.
