Bitcoin Slips as Trade Tensions and Economic Uncertainty Cap Momentum

Bitcoin prices edged lower on Tuesday, continuing to trade within a narrow range as market participants remained cautious amid renewed concerns over U.S. trade tariffs and signs of a potential economic slowdown.

The world’s largest cryptocurrency fell 0.4% to $94,375.7 as of 01:32 ET (05:32 GMT), extending its rangebound performance seen over the past week. After a sharp rally in late April driven by optimism over U.S.-China trade talks and institutional buying, Bitcoin has struggled to gain further traction as macroeconomic uncertainty weighs on investor sentiment.

The cryptocurrency has been trading largely between $90,000 and $97,000, with gains stalling amid risk-off sentiment in broader financial markets. President Donald Trump’s recent comments signaling plans to introduce new tariffs on pharmaceutical imports in the coming weeks have further rattled confidence, dampening the risk appetite that typically benefits speculative assets like Bitcoin.

Although cryptocurrencies are decentralized and not directly impacted by international trade disruptions, their performance is closely tied to shifts in market sentiment. Bitcoin, in particular, has exhibited high sensitivity to broader economic trends and investor positioning.

Adding to the cautious tone, institutional enthusiasm took a hit after Bitcoin investment firm Strategy (NASDAQ:MSTR) reported a significant first-quarter loss on its holdings, prompting investors to reassess the sustainability of corporate-led crypto accumulation strategies.

The broader cryptocurrency market mirrored Bitcoin’s subdued performance. Ether, the second-largest token by market capitalization, slipped 0.7% to $1,803.15, while Solana and Cardano declined 1.7% and 4.3%, respectively. Polygon saw a sharper drop of 5.6%, continuing its underperformance relative to peers.

Meme tokens also saw renewed selling pressure. Dogecoin fell 2.5%, and $TRUMP, which saw outsized gains in April, shed nearly 3% on the day.

With no immediate resolution in sight for U.S.-China trade tensions and economic indicators continuing to signal softness, cryptocurrencies may remain trapped in their current ranges. Market participants are now closely watching macroeconomic developments and policy signals for cues that could provide renewed direction.