Bitcoin Plummets Below $105,000 Amid Intensified US-China Trade Tensions
Bitcoin, the world’s largest cryptocurrency by market value, experienced a sharp decline on Friday, plunging to $104,782 as escalations in the US-China trade war added pressure on financial markets globally.
The cryptocurrency dropped approximately 8.4% during the trading session, marking a significant retreat from earlier in the week when Bitcoin hovered above $120,000. The fall highlights growing market uncertainty driven largely by renewed trade tensions between the United States and China, which have rattled investors and triggered risk-off behavior across asset classes.
In parallel with Bitcoin’s drop, Ethereum—the world’s second-largest cryptocurrency—also suffered losses, falling 5.8% to $3,637. This widespread decline among major cryptocurrencies underscores the risk sensitivity prevailing in the market amidst geopolitical turmoil.
According to reports, the current volatility coinsides with former President Donald Trump’s recent moves to intensify the trade conflict with China, introducing new tariffs and stricter regulations. Such developments have increased fears of a protracted economic standoff that could destabilize global markets and reduce investor appetite for riskier assets such as cryptocurrencies.
Market watchers point out that cryptocurrencies like Bitcoin, originally championed as a hedge against traditional market uncertainties, have become increasingly influenced by macroeconomic and geopolitical factors, making them susceptible to sudden price swings during political crises.
Experts speculate that continued escalation in the US-China trade dispute could prolong the bearish trend for cryptocurrencies and equities alike. Investors are advised to remain cautious as the evolving situation unfolds, potentially impacting liquidity and asset valuations worldwide.
This latest slump contrasts with Bitcoin’s price movements earlier in the month, when it briefly surged above $120,000, fueled by positive sentiment and heightened institutional interest. However, the renewed geopolitical tension appears to have reversed those gains swiftly.
As of the latest figures on Friday evening (ET), Bitcoin was trading around $104,782, down more than 8% for the day, while Ethereum dropped nearly 6%, reflecting widespread risk aversion in the crypto market.
(Reporting by Ruchika Khanna in Bengaluru; editing by Diane Craft)