Bitcoin Dips Below $104K as U.S.-China Tariff Disputes Resurface, Crypto Markets Retreat
Cryptocurrency prices dropped sharply on Friday following renewed concerns over U.S.-China trade relations.
Bitcoin (BTC) slipped 2.1% in the past 24 hours, briefly falling below $104,000 to around $103,900. The wider crypto market, measured by the CoinDesk 20 index, declined even more steeply, losing 4.2%.
Smart contract platforms faced notable losses, with Solana (SOL) down 6.3%, Sui (SUI) plunging 7.8%, and Avalanche (AVAX) dropping 7.3%.
Shares of crypto firms also took a hit: bitcoin mining company Bitdeer (BTDR) fell 8.3%, ending a recent rally that saw its price surge 132% since mid-April. MicroStrategy (MSTR) and Coinbase (COIN) shares declined 2.7% and 1.3%, respectively.
The downturn extended to traditional markets as well, with the S&P 500 falling 1%, Nasdaq down 1.5%, and gold retreating 0.7%.
Trade Tensions Flare Up Again
The sell-off was triggered by rising trade tensions after President Donald Trump accused China on Truth Social of violating the tariff truce established earlier this month.
U.S. Treasury Secretary Scott Bessent also indicated in a Fox News interview that talks with Chinese counterparts have stalled.
In response, China called on the U.S. to “immediately correct its erroneous actions and cease discriminatory restrictions,” according to BBC reports.
The easing of U.S.-China tensions earlier this month had fueled a rally in risk assets, including Bitcoin’s record highs. This renewed friction now threatens to reverse some of those gains.
