Bitcoin Sinks to $104,782 as Trump Escalates US-China Trade Battle
Bitcoin continued to fall on Friday after new trade tensions between the U.S. and China rattled global markets. Investors reacted quickly to U.S. President Donald Trump’s latest announcement on tariffs and technology restrictions.
Trump said he would raise tariffs on all Chinese exports to 100%. He also announced export controls on “critical software” in response to Beijing’s limits on rare earth minerals. These minerals remain vital for tech and manufacturing industries.
As a result, global markets faced heavy pressure. Traders reduced risky positions, and investors moved toward safer assets. The benchmark S&P 500 Index dropped more than 2%, reflecting rising fear and uncertainty.
Crypto Market Under Pressure
Bitcoin plunged 8.4%, reaching $104,782 by 17:20 ET (2120 GMT). The decline signaled growing caution in the crypto market. Traders said investors preferred to hold cash or gold amid global instability.
Ethereum also suffered a major loss. The second-largest cryptocurrency fell 5.8% to $3,637 at 17:21 ET. Other leading digital coins followed a similar downward path.
However, analysts believe such dips can create new buying opportunities. They pointed out that the crypto market often rebounds once the panic fades. Still, many expect volatility to continue until U.S.-China relations improve.
In addition, crypto investors are watching closely to see if these trade measures affect digital asset regulation or cross-border transactions. Some experts predict that tighter trade policies could push countries to explore blockchain alternatives for trade settlements.
For now, the crypto community remains cautious. Many traders prefer to wait for clarity before making large moves. Despite short-term pain, long-term investors see this as a temporary setback rather than a lasting decline.
