Bitcoin rallies as markets respond to China’s economic moves

Bitcoin and Ethereum extended their gains Wednesday, rising alongside broader financial markets as investors reacted to easing trade concerns and China’s latest efforts to stabilize its economy.

Bitcoin climbed 5% in 24 hours to nearly $92,000, adding to a 9% gain over the past week. Ethereum followed, rising 4.7% to $2,285, according to CoinGecko.

The rally comes as traders assess potential fallout from escalating US-China trade tensions, which led Beijing to announce new stimulus measures at the National People’s Congress.

Chinese Premier Li Qiang acknowledged the external pressures, warning that a “complex and severe external environment” could impact trade and technology sectors. To counteract these risks, China is increasing government deficit targets and infrastructure spending.

Analysts at QCP Capital noted that crypto remains tightly linked to broader macro trends. “With macro conditions in flux, price action reflects economic shifts,” the firm wrote.

Another potential market catalyst is the White House Crypto Summit on Friday. However, QCP warned that without concrete executive orders or congressional backing, the market is in “wait-and-see mode.”

White House announces temporary tariff exemption

In a major policy shift, the White House announced a one-month exemption from new US tariffs on imports from Mexico and Canada. The move is meant to give US automakers time to adjust to recent trade policy changes.

President Donald Trump urged automakers to shift production to the US, saying, “Start investing, start moving, shift production here where they will pay no tariff.”

Markets reacted positively, with the S&P 500 and Dow Jones Industrial Average each rising 1.1%, while the Nasdaq Composite gained 1.5%. Lower Treasury yields and softer oil prices also supported risk assets like crypto.

Juan Leon, Senior Investment Strategist at Bitwise Asset Management, noted that trade tensions are driving the dollar, interest rates, and oil lower, easing financial conditions. “On top of that, China just announced more stimulus. That’s providing ammunition for crypto to rally,” he said.

Argentina’s President Milei under fire over LIBRA token scandal

The lead prosecutor investigating Argentine President Javier Milei has requested the freezing of $100 million in cryptocurrency assets linked to the $LIBRA token sale.

Eduardo Taiano, the prosecutor leading the case, is investigating potential market manipulation after Milei promoted $LIBRA on social media before its price surged and then collapsed.

Milei’s endorsement of $LIBRA—marketed as a way to boost Argentina’s economy—led to a $4.5 billion market cap surge, before a dramatic crash left many investors at a loss. Milei later deleted his tweet, a move that is now a key focus of the investigation.

Blockchain analysis revealed that before $LIBRA’s collapse, a few wallets liquidated large positions. Crypto entrepreneur Hayden Davis, associated with Kelsier investment firm, admitted to making $100 million from the project before the crash.

Authorities are now working with international regulators to prevent further movement of funds.

This is not the first time Milei has been linked to crypto-related controversies—in 2022, lawsuits were filed against him over his promotion of CoinX, a platform accused of misleading investors.

US releases thousands of seized Chinese crypto mining machines

After months of seizures at US ports, authorities have started releasing thousands of detained Chinese-made crypto mining rigs, though many remain in custody.

The seizures stemmed from concerns over Chinese technology in sensitive sectors, with trade tensions rising under Trump’s new policies.

US agencies targeted Bitmain, MicroBT, and Canaan mining machines, with some flagged for containing AI chips from Sophgo, a Chinese firm under trade restrictions. Up to 10,000 mining rigs were stranded at US entry points, worth over $5 million.

The US controls 43.8% of Bitcoin’s mining hashrate, slightly behind China’s 45.8%, making access to mining hardware critical for US miners’ competitiveness.

Mt. Gox moves $1 billion in Bitcoin, raising creditor concerns

The defunct crypto exchange Mt. Gox has transferred 11,834 Bitcoin ($1.07 billion) to a new wallet, sparking speculation about its long-awaited creditor repayments.

This follows earlier transfers of 8,820 BTC ($760 million) between November and December 2024. Mt. Gox still holds 24,245 Bitcoin ($2.19 billion) across several wallets.

Mt. Gox was once the world’s leading Bitcoin exchange before collapsing in 2014 due to hacks that resulted in the loss of 840,000 BTC ($450 million at the time).

While creditor repayments were expected in October 2024, delays have pushed the process into 2025. Meanwhile, Bitcoin’s price jumped 12% in 24 hours, briefly hitting $92,750 before settling at $91,220.

BioNexus pivots to Ethereum as corporate treasury asset

In a landmark move, BioNexus Gene Lab Corporation has become the first Nasdaq-listed company to prioritize Ethereum as a strategic treasury asset.

The Wyoming-based tech firm released a whitepaper detailing why it chose Ethereum over Bitcoin.

• Staking rewards: Ethereum’s Proof-of-Stake model allows 3-5% annual yield, making it an income-generating asset.
• Institutional backing: Adoption by BlackRock and Fidelity signals Ethereum’s long-term potential.
• Stablecoin settlement: Ethereum settles trillions in USDT, USDC transactions annually, proving its role in global finance.

BioNexus CEO Sam Tan confirmed the company will allocate a "meaningful portion" of its reserves to Ethereum but declined to disclose exact figures.

Despite the move, BioNexus is facing financial struggles. The company received a Nasdaq non-compliance notice in December 2024, requiring it to raise its stock price above $1 by May 2025. To address this, BioNexus plans a reverse stock split by April 7, 2025.

The big picture: Crypto’s growing role in global finance

From Bitcoin’s price rally to Argentina’s crypto scandal and US regulatory moves, the cryptocurrency landscape is evolving at breakneck speed.

The White House Crypto Summit on Friday could be a major turning point, particularly as the US explores a Bitcoin strategic reserve. Meanwhile, institutions like BioNexus continue to integrate Ethereum into their financial strategy, while Mt. Gox repayments keep billions in Bitcoin on the move.

As markets navigate trade uncertainties, regulation, and institutional adoption, crypto’s resilience is on display. Stay tuned as we track Friday’s key policy announcements—they could set the tone for crypto’s next big move.