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Bitcoin and other cryptocurrencies experienced renewed selling pressure on Tuesday as trade tensions between the US and China escalated
Crypto Market.
Bitcoin and other cryptocurrencies experienced renewed selling pressure on Tuesday as trade tensions between the US and China escalated, with both countries imposing new tariffs on each other’s goods.
Bitcoin, the largest cryptocurrency, dropped by as much as 3.6% to $98,199, while other major tokens like Ether and Solana also saw declines.
In response to the US’s imposition of a 10% tariff on all Chinese goods, China retaliated by placing new tariffs on US imports, including oil and liquefied natural gas. Additionally, China announced an investigation into Google for alleged antitrust violations, according to Bloomberg.
This new market turmoil erased the gains from Monday’s relief rally, which followed a temporary agreement by the Trump administration to delay tariffs on Mexico and Canada for a month. Cryptocurrencies had initially dropped sharply when the tariff news broke over the weekend.
The intensifying trade tensions have shaken investor confidence in riskier assets, with US investors pulling $235 million from a group of 12 Bitcoin-focused exchange-traded funds on Monday. Open interest in Bitcoin futures contracts on CME Group’s derivatives exchange also dropped by 4%, indicating a more cautious stance from institutional investors.
Despite President Trump’s pro-crypto stance, the latest developments have introduced fresh uncertainty into the digital-asset markets. Although cryptocurrencies surged following Trump’s election, they are now facing a challenging year marked by geopolitical and regulatory challenges.
At 8:10 a.m. on Tuesday in London, Bitcoin was trading at $98,517, still around 10% below its record high.