USPS Suspends Shipments to China: Here’s Why Bitcoin Is Struggled

The fear that is gripping the US market is hard to ignore, especially since President Donald Trump pushed for a tariff trade war as part of his campaign promise. But what is truly surprising is that this fear is now spreading to the crypto market.

Bitcoin's Fear and Greed Index has plummeted, falling from over 70% – a sign of greed – to around 50%.

Does this mean more volatility ahead for Bitcoin and the cryptocurrency market in general?

Bitcoin is about to face a decline?
As Coinpedia reported earlier, Bitcoin price is now facing a potential drop to support around $91,000 after being rejected above $102,000 in the past two days. Since altcoins tend to follow Bitcoin price movements closely, the entire cryptocurrency market is likely to experience more weakness in the short term.

New US trade restrictions and their impact
In an effort to combat drug trafficking from China,  the United States Postal Service has announced that it will temporarily stop accepting international packages from China and Hong Kong, starting February 4, 2025. However, the post office will still process letters and packages from these areas.

The suspension will impact the e-commerce sector, especially companies like Shein and Temu, which rely heavily on cross-border trade. By 2024, an average of 4 million packages worth less than $800 will be shipped from China to the United States every day.

Interestingly, the use of digital assets in commerce between China and the United States is on the rise. Payment methods such as PayPal, Visa, Apple Pay, MasterCard, and Google Pay, which increasingly support digital assets, have become popular in transactions between merchants and customers in the two countries.