BTC falls below $100K as China responds against US tariffs
Bitcoin drops below $100,000 on Tuesday after rebounding from $91,231.
Risky assets like Bitcoin may be more volatile due to the US-China trade conflict.
Bybit CEO Ben Zhou estimates that Monday's liquidation was $8–10 billion, significantly more than $2 billion.
Bitcoin (BTC) fell over 3% to below $100,000 in the early European session on Tuesday after rebounding from $91,231 the day before. Bitcoin may become more volatile due to the US-China trade conflict. In addition, Bybit CEO Ben Zhou estimates that the Monday liquidation totaled $8–10 billion, much above the stated $2 billion.
US-China trade war escalation may boost Bitcoin volatility.
Bitcoin fell to $91,231 in early Asian trade, but it rallied to settle over $101,300 on Monday. US President Donald Trump's Saturday tariffs on China, Canada, and Mexico exacerbated the current downturn. This caused crypto market selling. Bitcoin rallied this autumn after US President Trump announced the formation of the first US sovereign wealth fund for economic growth on Monday. Crypto community members are optimistic about adding Bitcoin to the sovereign wealth fund with the new order.
Bitcoin is down 3% in the early European session on Tuesday. As traders await US-China tariff discussions, markets may become cautious later in the day.
According to FXStreet analyst Lallalit Srijandorn, “China's finance ministry on Tuesday announced a package of tariffs on a range of US products, including crude oil, farm equipment, and some autos, in an immediate response to US President Donald Trump's 10% tariff on Chinese imports that went into effect at 05:01 GMT on Tuesday
Trade tariffs will be continuously watched. Trump's tariffs are likely to raise US inflation and interest rates, strengthening the USD. These occurrences may cause Bitcoin volatility, so traders should be careful.
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