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The Bitcoin (BTC) price recorded an intra-day high of $74,942 on Tuesday after China denied arming Iran and warned the US against tariff escalation.
The denial follows President Trump’s 50% tariff threat on any country supplying weapons to Tehran, injecting new tension into an already volatile geopolitical and trade environment.
China Pushes Back on Arms Accusations
Spokesperson Guo Jiakun said Beijing “always acts prudently and responsibly on the export of military products.” He called media reports of Chinese military support for Iran “purely fabricated” and vowed countermeasures if tariffs followed.
The statement responded to US intelligence assessments that China was preparing to ship air defense systems to Iran. Trump warned on April 12 that suppliers would face an immediate 50% levy on all US-bound exports.
“A Country supplying Military Weapons to Iran will be immediately tariffed, on any and all goods sold to the United States of America, 50%, effective immediately. There will be no exclusions or exemptions! President DJT,” Trump wrote in a recent Truth Social post.
The confrontation adds to a year of escalating US-China trade friction that has whipsawed crypto markets repeatedly. A 100% tariff threat on Chinese goods in late 2025 wiped nearly $200 billion from total crypto market capitalization.
Trump’s Strait of Hormuz blockade, ordered after US-Iran talks in Islamabad collapsed, has also reshaped global trading positions.
WTI crude traders flipped from 57% short to 68% long in one week, according to Capital.com data. Gold longs reached 79%, while four major currency pairs reversed to majority short positions over the same period.
Bitcoin Price Rally Faces Sentiment Warnings
BTC gained more than 5% over the weekend as a short squeeze liquidated roughly $89 million in bearish positions. Spot Bitcoin ETF inflows added fuel, with BlackRock’s IBIT recording $269 million in a single day last week.
The pioneer crypto extended gains this week and traded just shy of the $75,000 threshold on Tuesday, with an intra-day high of $74,942. As of this writing, BTC exchanged hands for $73,141.
Bitcoin Price Performance. Source: TradingView Gemini co-founder Cameron Winklevoss captured the mood, asking “Why is bitcoin hitting $74k? I thought bitcoin was dead?”
The comment mocked a narrative that has surfaced hundreds of times since 2010 despite repeated recoveries.
However, DeFi Report founder Michael Nadeau warned that rising conviction about a bottom, paired with low volumes, echoes patterns before further declines in 2022.
Bitcoin Spot Volume Across Exchanges in Past Bear Markets. Source: Glassnode“BTC does not bottom when everyone thinks the bottom is in… sentiment suggests the average investor is already allocated,” he stated.
Monte Safieddine, Head of Market Research at Capital.com, noted that as the US blockade of the Strait of Hormuz continues and markets process its implications for inflation and growth, long bias in US equity indices has softened across the board.
“Tuesday morning’s data shows a broad reduction in long bias across US equity indices as the price gains built on optimism that an eventual deal will be made took some buyers by surprise who opted to take profit, with a similar story occurring in gold. But oil’s pullback hasn’t shaken longs who continue to pile in, while on the currency front USD/JPY traders prefer to stick majority to the sell side shorting into any price gains near the 160 red line,” Safieddine said in a statement shared with BeInCrypto.
The proportion of traders long the S&P 500 has fallen to 61% from 64% at the start of the week, while the Dow has dropped to 60% from 67%, moving out of heavy buy territory.
Whether BTC holds above $74,000 may hinge on how quickly the China-US standoff shifts from threats to action.
The post China Denies Iran Arms as $75,000 Bitcoin Surge Hints at Deeper Global Shock appeared first on BeInCrypto.
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