Bitcoin Tumbles to $83.5K as Trade Uncertainty Drives Market Caution

Image Credit: Reuters

Bitcoin dipped on Wednesday, wiping out its modest gains for the week as investors awaited more clarity on U.S. President Donald Trump’s fluctuating tariff policies, which have caused uncertainty in global markets.

The leading cryptocurrency fell 2.5%, dropping to $83,409.4 by 01:20 ET (05:20 GMT). It had briefly surged above $86,000 on Tuesday, but struggled to maintain those levels.

Tariff Uncertainty Drives Risk Aversion; Gold Hits Record High  

\Investors weighed the broader impact of Trump’s shifting trade policies. While the president recently suggested potential exemptions for certain tariffs, such as the 25% duty on foreign vehicle imports, his administration is still considering additional tariffs on semiconductors and pharmaceuticals.  

Chinese goods continue to face a steep 145% tariff, triggering retaliatory measures from China. This uncertainty has dampened global risk appetite, leading to a decline in interest in speculative assets like cryptocurrencies. Bitcoin, often seen as a hedge during geopolitical tensions, seems to be losing some of its appeal as a safe-haven asset in light of Washington's mixed signals. Meanwhile, gold, a traditional safe haven, surged to a record high on Wednesday.

China Considers New Rules for Seized Cryptos  

China is exploring new regulations for handling seized cryptocurrencies as local authorities face growing stocks of tokens seized in criminal cases, Reuters reported on Wednesday. With crypto trading banned on the mainland, authorities have turned to private companies for liquidation, but the makeshift solution is under growing scrutiny. Legal experts are calling for clearer regulations, and there’s speculation that China could adopt a strategy similar to the U.S. proposal for crypto reserves. China’s crypto holdings, estimated at $1.4 billion in Bitcoin, make it one of the world’s largest state-owned crypto holders.

Altcoins Fall Sharply; Ethereum and Solana Lead Losses  

Most altcoins experienced steeper declines than Bitcoin. Ethereum, the second-largest cryptocurrency, fell 4.6% to $1,565.68, while XRP, the third-largest, dropped 3.6% to $2.0706. Solana declined 5%, Cardano slumped 6%, and Polygon fell 2.2%. Among meme coins, Dogecoin lost 4.5%, and $TRUMP dropped 3%.

 

 

 

 

 

 

 

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