Bitcoin fell on Tuesday, halting its recent rally as markets remained largely risk-averse amid growing fears of a renewed US-China trade war.
The broader cryptocurrency markets also moved in a flat-to-low range, after suffering heavy losses in recent sessions. US President Donald Trump's announcement of 100% tariffs on China wiped out approximately $500 billion in cryptocurrency market capitalization in a matter of days.
Bitcoin was at the center of this collapse, falling sharply from a record high of $126,000 last week. The world's largest cryptocurrency fell 1% to $113,547.0000 by 7:53 AM Saudi time.
Demand for the world's largest cryptocurrency has largely been replaced by demand for safe havens like gold, which hit another record high on Tuesday.
While cryptocurrency markets received some support from US officials offering conciliatory comments on China, risk appetite remained largely subdued.
Bitcoin's short-lived rebound as US-China tensions spark a cryptocurrency crash
Bitcoin fell to a low of $103,800 over the weekend after Trump's initial announcement of additional tariffs against China.
While the world's largest cryptocurrency recovered to $115,000 on Monday, its recovery stalled amid few signs of improvement in US-China relations.
Beijing said on Tuesday it is ready to fight to the end in a trade war with Washington, and accused the United States of discriminatory practices.
The recent trade tensions—which threaten to undermine a previous framework agreement between Washington and Beijing—stem largely from US anger over China's introduction of stricter controls on rare earths exports.
China said on Tuesday that the controls were justified and indicated it had no intention of giving in to US demands. While Beijing confirmed that working-level talks with Washington were continuing, it warned against imposing further trade tariffs.
Cryptocurrency Prices Today: Ether and Altcoins Remain Declining
Broader cryptocurrency prices moved in a stable to declining range, as risk appetite showed few signs of improvement.
The world's second-largest cryptocurrency, ether, fell 0.4% to $4,116.5600, after falling to a low of $3,400 over the weekend.
XRP fell 0.6% and remained below the $3.0000 level.
Solana and Cardano saw some strength, rising 4.8% and 1.1%, respectively.
Among meme coins, Dogecoin fell 0.7%, while $TRUMP rose 2%.
In addition to trade tensions, cryptocurrency markets have also been facing growing doubts about institutional treasury strategy, particularly in Bitcoin.
