Bitcoin Declines Below $100K Amid Rising US-China Trade Tensions
Bitcoin extended its losses on Wednesday, failing to sustain gains above the crucial $100,000 level as escalating U.S.-China trade tensions kept investor sentiment on edge.
As of 1:45 ET (06:55 GMT), Bitcoin was down 1.8%, trading at $97,601.8.
Bitcoin Struggles Amid Trade Disputes
The cryptocurrency briefly surpassed the $100,000 mark over the past two days but was unable to hold onto those gains as tensions between the U.S. and China escalated.
The trade dispute intensified after the U.S. imposed a 10% tariff on Chinese imports, citing national security concerns. In retaliation, China announced new tariffs on U.S. goods, including liquefied natural gas, coal, crude oil, and farm equipment. Additionally, Beijing launched an antitrust investigation into Alphabet (NASDAQ:GOOGL) Inc.’s Google.
These geopolitical developments have increased investor caution, driving up market volatility. Gold prices, for instance, surged to record highs as investors sought safe-haven assets amid uncertainty.
Bitcoin’s struggle to hold above $100,000 reflects the broader risk-averse sentiment gripping financial markets.
Trump Administration Moves to Ease Crypto Regulations – NYT
According to a New York Times (NYSE:NYT) report, the U.S. Securities and Exchange Commission (SEC) is reducing the size of its crypto enforcement unit, reassigning attorneys to other departments. This move aligns with the Trump administration’s broader efforts to ease cryptocurrency regulations.
While a softer regulatory stance could have been a bullish catalyst for Bitcoin, broader macroeconomic concerns—particularly the intensifying U.S.-China trade conflict—have overshadowed this development.
The impact of the SEC’s downsizing on ongoing crypto enforcement actions remains unclear, the report added.
Crypto Market Today: Altcoins Remain Range-Bound
Most altcoins traded within narrow ranges, mirroring Bitcoin’s cautious sentiment.
Ether, the world’s second-largest cryptocurrency, edged up 0.5% to $2,741.53, while XRP slipped 1.1% to $2.4957.
Solana dipped 0.7%, Polygon remained largely unchanged, and Cardano eased 0.3%.
Among meme tokens, Dogecoin held steady, reflecting subdued speculative activity across the crypto market.
