The cryptocurrency market is once again facing uncertainty as new developments surrounding US-China trade relations threaten to derail its recent gains. The news comes out despite China denying they engage in talks with the US, even though Trump announced talks were underway.

In a statement released by China’s Commerce Ministry, spokesman He Yadong dismissed claims of progress in tariff talks, calling reports of breakthroughs “groundless.”

According to a Bloomberg report, he demanded from the US government to prove its commitment to finding solutions if both sides want to achieve a settlement. The changing trade situation between the top economies of the world continues to influence all sections of the market especially cryptocurrencies.

Bitcoin Seen as Safe Haven Amid US-China Tensions

The crypto market rose strongly during its latest rally but remains vulnerable to a sudden decrease in value. This week Bitcoin achieved its peak value by reaching $85,000. Many altcoins experienced significant gains alongside market sentiment.

A fresh trade clash would derail the current positive movement. According to industry analysts, the digital currency industry will experience another significant downturn taking back most recent weekly profits.

Research shows the cryptocurrency market continues to grow independent from stock market weakening caused by US-China trade tensions. More investors see Bitcoin as an asset type comparable to gold which provides security during uncertain times.

US-China Trade Tensions Threaten Crypto Market

Majority market players now view Bitcoin as a safer investment during trade wars so it could experience better results than stocks. The crypto analyst Titan of Crypto helps investors understand how Bitcoin behaves in the market by sharing important price markers for them to watch.

Based on Titan’s analysis, the Bitcoin price has crossed $92,700 daily low but investors rely heavily on a substantial support zone known as “Fair Value Gap.” Their focus now turns to the previous daily peak of $95,000 alongside the monthly high at the same level.

Titan states that when Bitcoin shows larger falls, its Tenkan support line at $86,000 stands as the main indicator to follow. Bitcoin’s movement between bullish and bearish phases will mostly depend on whether it succeeds in pushing past the Kumo Cloud to begin gaining strength in rallies.