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Bitcoin fell on Wednesday, pulling back sharply from Tuesday’s highs as growing uncertainty around U.S. trade policy under President Donald Trump spooked global markets and dampened demand for speculative assets like cryptocurrencies.
As of 01:20 ET (05:20 GMT):
- Bitcoin (BTC) dropped 2.5% to $83,409.40, retreating from above $86,000 seen a day earlier
Tariff Uncertainty Fuels Market Jitters, Bitcoin Loses Shine
Investors are increasingly on edge as Trump’s shifting trade rhetoric creates volatility across asset classes. While the president recently floated the idea of exempting foreign vehicles from tariffs, his administration has also:
- Pursued new tariffs on semiconductors and pharmaceuticals
- Maintained a 145% cumulative tariff on Chinese goods
- Prompted a 125% retaliatory response from Beijing
This erratic approach has crushed risk appetite, and while Bitcoin is often seen as a hedge against geopolitical instability, its behavior this week suggests otherwise.
Indeed, gold surged to a record high on Wednesday, highlighting the flight to traditional safety amid market confusion and tariff escalation.
China Mulls Crypto Disposal Rules as Seized Tokens Pile Up – Reuters
In related developments, China is reportedly working on rules for managing seized cryptocurrencies, according to a Reuters report.
Key highlights:
- Crypto trading remains banned in mainland China, but enforcement actions have resulted in seizures worth an estimated $1.4 billion in Bitcoin
- Authorities have relied on private firms to liquidate these assets — a temporary solution now under review
- Regulators and legal experts are calling for clearer oversight, and some speculate China could adopt a formal reserve strategy similar to Trump’s proposed U.S. crypto reserve plan
If confirmed, China would rank among the top global crypto holders, adding a new layer of complexity to the global crypto landscape.
Altcoins Hit Harder Than Bitcoin
While Bitcoin’s losses were notable, altcoins suffered even deeper declines, reflecting higher sensitivity to risk-off flows:
- Ethereum (ETH): -4.6% to $1,565.68
- XRP: -3.6% to $2.0706
- Solana (SOL): -5%
- Cardano (ADA): -6%
- Polygon (MATIC): -2.2%
Meme tokens also declined:
- Dogecoin (DOGE): -4.5%
- $TRUMP token: -3%
Outlook: Crypto Faces a Confidence Crisis
Bitcoin’s failure to rally amid rising geopolitical stress and gold’s historic surge raises questions about its safe-haven status. Meanwhile, altcoins are increasingly correlated with broader market risk, rather than offering diversification.
With Trump’s tariff plans still evolving, and crypto regulation emerging on multiple fronts, traders should brace for:
- Continued volatility across digital assets
- Possible policy-driven moves, especially from the U.S. and China
- A fragile macro backdrop that could further weigh on risk assets
Unless Bitcoin can regain momentum above key levels (e.g., $86,000–$88,000), the near-term tone remains bearish, especially if gold continues to attract safe-haven flows at crypto’s expense.
