Bitcoin extended its losses for a third consecutive day, falling to $104,782, down nearly 6% in 24 hours. The drop followed Donald Trump’s announcement of new trade restrictions and tariff hikes targeting Chinese exports, reigniting fears of a full-blown U.S.-China trade war. The comments sent investors scrambling for safer assets, leading to declines across stocks, cryptocurrencies, and emerging market currencies.

Market Analysts Link Crypto Sell-Off to Trade War Fears

Analysts say Bitcoin’s latest dip mirrors investor behavior during previous geopolitical flare-ups, where uncertainty drives a pullback from risk-heavy assets. “This is classic risk-off sentiment,” said a senior analyst at CryptoQuant. “When trade tensions rise, liquidity shifts toward the U.S. dollar and gold, away from volatile assets like Bitcoin.”

Broader Crypto Market in Red

The crypto market capitalization dropped by over 4.2%, with Ethereum (ETH) slipping below $5,000, and Solana (SOL) tumbling over 8%. Altcoins also mirrored Bitcoin’s trajectory, signaling a synchronized risk retreat among investors. Futures data showed heightened liquidations exceeding $350 million across major exchanges within 24 hours.

Investors Await U.S. Policy Clarity

Market participants are now eyeing the Federal Reserve’s next policy statements and any response from China’s Ministry of Commerce. A prolonged escalation in trade disputes could further dent crypto sentiment, particularly if it leads to economic slowdowns or regulatory uncertainty. Analysts suggest Bitcoin may test lower support levels around $100,000 if volatility persists.

Conclusion: A Test of Market Resilience

Bitcoin’s fall to $104,782 highlights the asset’s continued sensitivity to global macroeconomic developments. As tensions between Washington and Beijing intensify, the crypto market’s resilience will be tested in the coming days. For investors, this downturn underscores how geopolitical events can still dictate short-term crypto price movements despite growing institutional adoption.