Bitcoin Dips Below $104K as Renewed U.S.-China Tariff Dispute Weighs on Cryptos

The cryptocurrency market took a hit on Friday amid escalating trade tensions between the U.S. and China, shaking investor confidence.

Bitcoin (BTC) slid 2.1% in the last day, hovering just above the $104,000 mark after dipping briefly to $103,900. The wider crypto sector, as measured by the CoinDesk 20 index—which tracks the 20 largest non-stablecoin tokens—fell by 4.2%.

Smart contract networks faced steep losses: Solana (SOL) declined 6.3%, Sui (SUI) dropped 7.8%, and Avalanche (AVAX) fell 7.3%.

Shares of crypto companies also suffered sharp declines. Bitdeer (BTDR), a bitcoin mining firm that had surged 132% since mid-April, plummeted 8.3%. MicroStrategy (MSTR) and Coinbase (COIN) slipped 2.7% and 1.3%, respectively.

The sell-off wasn’t limited to digital assets. Traditional markets were also impacted, with the S&P 500 and Nasdaq retreating 1% and 1.5%. Gold declined 0.7%, reflecting the broader risk-off sentiment.

Trade Tensions Resurface

The sell-off followed renewed friction in U.S.-China trade relations. Despite a recent tariff truce, President Donald Trump accused China on Truth Social of violating the agreement, sparking concerns of a trade dispute resurgence.

Adding to the uncertainty, U.S. Treasury Secretary Scott Bessent told Fox News that negotiations with China had “stalled.”

China responded by calling on the U.S. to “correct its mistakes” and lift discriminatory restrictions, according to reports from the BBC.

The previous easing of tensions had supported a rally in risk assets, helping Bitcoin achieve new highs. The current escalation threatens to reverse this progress as investors grow cautious.