Amid global tensions, Bitcoin is emerging as a key currency. The US-China trade war shakes the world.
A huge Bitcoin logo rises from broken ground. It glows orange in a 1970s comic style. Financial buildings crumble around it. A US flag and a Chinese flag are torn. A plane falls in the distance. The scene shows Bitcoin's rise in chaos.
The US and China have been in a trade war since 2018. It started when Trump put tariffs on China. China then taxed US goods.
Biden keeps most tariffs while talking trade. China has not bought all the US goods it promised.
In 2023, the US stopped some exports of chip tools. China then limited rare metal exports. These metals are key for tech.
Tariffs are now at 125%. Trade between the two may stop.
In 2024, China sent $439 billion to the US. This is 13% of China's exports and 16% of US imports.
The S&P 500 fell 19%. Bitcoin dropped to $82,000. It was down 24% from its high.
Bitcoin fell more in 2018, down 77%. Covid caused that drop. Now, big drops may be over.
The 10-year US rate is high at 4.2%. The US wants to lower it.
The US lived beyond its means. Others funded its debt. This is the petrodollar system. Nations put trade money in US bonds.
This let the US borrow cheaply. It imported more than it exported. This led to a $1.1 trillion deficit and huge debt. The US owes $8 trillion.
The US forced the world to fund it. Now, the BRICS want to trade without dollars. They do not want to fund the US lifestyle.
The White House wants to cut deficits. They plan to cut spending and bring back industry.
This feels like the USSR's fall. The US empire may end. It will be hard. The US wants to trade fairly again.
China's bank told banks to buy less US debt. This is good.