China denies supplying weapons to Iran as Bitcoin surges to $75,000, foreshadowing a deeper global shock.

Bitcoin (BTC) price set a daily high of $74,942 on Tuesday after China rejected accusations of providing weapons support to Iran and warned the US against escalating trade tariffs.

China's reaction comes after President Trump threatened to impose a 50% tariff on any country that supplies weapons to Tehran, further escalating tensions in an Capital volatile geopolitical and trade environment.

China refutes accusations of supplying weapons.

Spokesperson Guo Jiakun said Beijing “always acts cautiously and responsibly in exporting military products.” He called reports of China providing military support to Iran “completely fabricated” and affirmed that China would retaliate if the U.S. continued to impose tariffs.

This statement was in response to assessments from U.S. intelligence that China was preparing to transfer air defense systems to Iran. On April 12, 2024, Trump warned that any supplier would face an immediate 50% tariff on all goods exported to the U.S.

“Any country that supplies military weapons to Iran will immediately be subject to a 50% tariff on all exports to the United States, effective immediately. No exceptions! President DJT,” Trump recently wrote on Truth Social.

This tension further escalated the US-China trade war and had a significant impact on the crypto market. By the end of 2025, when Trump announced the possibility of imposing 100% tariffs on Chinese goods, the crypto market Capital had plummeted by $200 billion.

Trump's blockade of the Strait of Hormuz , issued after the failure of US-Iran talks in Islamabad, is also altering global trade strategies.

According to data from Capital.com, the percentage of traders shorting WTI oil decreased from 57% to 32%, while the percentage buying increased to 68% in just one week. The percentage of investors buying gold reached 79%, and four major currency pairs also reversed to mostly short positions during the same period.

Bitcoin's price surge faces warnings about sentiment.

BTC surged over 5% over the weekend following a Short squeeze that resulted in the liquidation of approximately $89 million in short positions. Capital into spot Bitcoin ETFs also fueled the rally, with BlackRock's IBIT ETF recording $269 million in inflows in just one day last week .

Bitcoin continued its upward momentum this week, approaching the $75,000 mark on Tuesday, with a daily high of $74,942. At the time of writing, BTC is trading at $73,141.

Gemini co-founder Cameron Winklevoss jokingly Chia : "Why did Bitcoin reach $74,000? I thought Bitcoin was dead!"

This comment mocks the pessimistic views on bitcoin that have surfaced hundreds of times since 2010, despite numerous strong price recoveries.

However, DeFi Report founder Michael Nadeau warns that the certainty of a Dip combined with low volume is repeating patterns preceding deep downturns in 2022.

“BTC never Dip when everyone thinks it Dip…the current sentiment suggests that retail investors have already finished investing,” he Chia .

According to Monte Safieddine, Head of Market Research at Capital.com, as the US continues its blockade of the Strait of Hormuz and the market gradually realizes its impact on inflation and growth, the bullish trend in US stock indices has weakened across the board.

“Tuesday morning’s data showed a significant decrease in buying pressure in the US stock market as prices rose on expectations of an upcoming agreement, leading many investors to unexpectedly take profits. Gold followed a similar trend. However, oil continued to attract strong buying despite the price correction. Meanwhile, USD/JPY traders continued to primarily short sell whenever the price approached the 160 mark,” Safieddine Chia BeInCrypto.

The percentage of traders buying the S&P 500 has fallen to 61% from 64% earlier in the week, while the Dow has dropped to 60% from 67% previously, moving out of strong buying territory.

Whether BTC can hold above $74,000 may depend on how quickly tensions between China and the US will shift from threats to actual action.