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Bitcoin extended its losses on Wednesday, retreating below the critical $100,000 threshold as escalating U.S.-China trade tensions fueled investor caution and heightened global market volatility.
As of 1:45 ET (06:55 GMT), Bitcoin (BTC) was down 1.8% at $97,601.8, failing to sustain gains after briefly surpassing the six-figure milestone in recent sessions.
Trade Dispute Weighs on Market Sentiment
The latest market pullback comes amid a renewed U.S.-China trade dispute, triggered by Washington’s 10% tariff on Chinese imports citing national security concerns. In response, Beijing retaliated with tariffs on key U.S. exports, including:
- Liquefied natural gas (LNG)
- Coal and crude oil
- Farm equipment
Additionally, China’s State Administration for Market Regulation launched an antitrust investigation into Alphabet Inc.’s Google (NASDAQ:GOOGL), further intensifying trade frictions.
Broader Risk-Off Sentiment and Market Volatility
The mounting economic uncertainty has driven increased demand for safe-haven assets, with gold prices hitting record highs as investors seek shelter from volatility. Bitcoin’s decline suggests that despite its reputation as digital gold, the cryptocurrency remains vulnerable to broader risk-off sentiment in global markets.
Key Levels to Watch
Bitcoin’s failure to hold above $100,000 raises concerns over its short-term momentum, with analysts closely watching support levels near $95,000. A break below this range could trigger further downside pressure, while a renewed push above psychological resistance at $100,000 may signal a return to bullish sentiment.
As trade tensions persist, market participants will be monitoring developments closely, with risk appetite and macroeconomic factors likely to play a key role in Bitcoin’s price trajectory.
