Bitcoin and other digital assets faced renewed selling pressure on Tuesday as trade tensions between the world’s two largest economies intensified, with the US and China imposing fresh tariffs on each other.
The largest cryptocurrency fell as much as 3.6% to $98,199, while other major tokens including Ether and Solana also lost ground.
China retaliated to Washington imposing a 10% levy on all Chinese goods by announcing fresh tariffs on certain products imported from the US, including oil and liquefied natural gas. China also said it will investigate US tech giant Google LLC for alleged antitrust violations.
The renewed market turbulence erased gains from Monday’s relief rally, which came after a temporary agreement by the Trump administration to delay tariffs on Mexico and Canada by a month. Cryptocurrencies had fallen sharply when the levies were first announced over the weekend.
Escalating trade tensions have dealt a blow to investor confidence in risky assets. US investors pulled a net $235 million from a group of 12 Bitcoin-focused exchange-traded funds on Monday. Open interest in Bitcoin futures contracts on CME Group Inc.’s derivatives exchange also fell 4%, signaling a more cautious approach among institutional players.
President Donald Trump, who is avowedly pro-crypto, has also introduced fresh uncertainty for digital-asset markets. While cryptocurrencies initially surged following Trump’s election, they are now struggling amid a challenging year marked by geopolitical and regulatory headwinds.
Bitcoin was trading at $98,517 as of 8:10 a.m. on Tuesday in London, about 10% away from its record high.
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