Bitcoin declines amid ongoing US-China trade tensions

Bitcoin Falls as Trade Tensions Weigh on Risk Appetite

Bitcoin retreated on Tuesday, ending its recent rebound as risk appetite faded across markets amid escalating fears of a renewed trade war between the United States and China.

The broader cryptocurrency market traded lower or flat after suffering steep losses in recent sessions.

U.S. President Donald Trump’s announcement of 100% tariffs on China wiped nearly $500 billion off the total crypto market capitalization in just a few days.

Bitcoin led the decline, plunging sharply from last week’s record high of $126,000.

As of 00:53 Eastern Time (04:53 GMT), the world’s largest cryptocurrency was down 1% at $113,547.

Investors shifted away from Bitcoin toward traditional safe-haven assets such as gold, which hit a new all-time high on Tuesday.

Although more conciliatory U.S. statements toward China offered brief support to digital assets, overall risk sentiment remained fragile.

Bitcoin’s Rebound Short-Lived Amid Market Turmoil

Bitcoin had fallen sharply to $103,800 over the weekend following Trump’s initial announcement of new tariffs on China.

While the token later recovered to $115,000 on Monday, the rebound quickly lost steam as signs of improvement in U.S.–China relations remained absent.

China said on Tuesday it was “ready to fight to the end” in a trade war with the United States, accusing Washington of discriminatory policies.

The latest flare-up in trade tensions — threatening to unravel the previous framework agreement between the two sides — stems from U.S. anger over China’s tightened restrictions on rare-earth exports.

Beijing defended the curbs as justified and signaled little willingness to comply with U.S. demands, though it confirmed that technical talks with Washington were ongoing while warning against further tariff escalation.