China Denies Arming Iran as Bitcoin Nears $75K

China denied plans to ship military equipment to Iran and warned it would take countermeasures if the United States imposed tariffs tied to weapons supplies. The denial came after U.S. intelligence assessments that China was preparing to deliver air defense systems to Tehran.

Guo Jiakun, a foreign ministry spokesperson, said Beijing “always acts prudently and responsibly on the export of military products” and called reports of shipments to Iran “purely fabricated.” The comments followed a post by President Trump on April 12 that any country supplying military weapons to Iran would face an immediate 50% tariff on goods bound for the United States with no exemptions.

Markets reacted across asset classes. Bitcoin rose more than 5% over the weekend after a short squeeze that liquidated about $89 million in bearish positions. Spot bitcoin exchange-traded fund inflows increased, including a single-day deposit of $269 million into BlackRock’s IBIT. Bitcoin reached an intraday high of $74,942 and was trading near $73,141 at the time of reporting.

Cameron Winklevoss tweeted, ‘Why is bitcoin hitting $74k? I thought bitcoin was dead?’ Michael Nadeau of DeFi Report cautioned that growing conviction about a market bottom amid low trading volumes has mirrored conditions seen before additional declines, stating, ‘BTC does not bottom when everyone thinks the bottom is in… sentiment suggests the average investor is already allocated.’

A U.S.-ordered naval blockade in the Strait of Hormuz after talks with Iran in Islamabad failed also affected trading positions. Data showed WTI crude positioning shifted from 57% short to 68% long in one week, while long positions in gold climbed to 79%. Four major currency pairs moved to majority short positions. The proportion of traders long the S&P 500 fell to 61% from 64%, and long exposure to the Dow slipped to 60% from 67% over several sessions.

Chinese officials described their response as compliant with domestic law and international obligations and warned of countermeasures if punitive tariffs are applied. The U.S. statement linking trade levies to military supplies raises the possibility of rapid policy escalation if shipments are confirmed.

Analysts noted that the mix of geopolitical headlines, tariff rhetoric, ETF flows and technical trading dynamics has driven recent volatility across asset classes. A prior tariff proposal in late 2025 for a 100% levy on certain imports coincided with a roughly $200 billion decline in total cryptocurrency market capitalization.