Investing.com-- Bitcoin fell on Tuesday, retreating further from recent peaks as risk appetite was rattled by President-elect Donald Trump threatening more trade tariffs on China and other countries.
The world’s largest cryptocurrency was also hit with a wave of selling pressure, likely profit-taking, after it failed to breach the coveted $100,000 level last week.
Bitcoin fell 3.6% to $94,567.1 by 00:49 ET (05:49 GMT). The coin hit a record high of over $99,000 last week, but has pulled back sharply since.
Bitcoin’s rally was driven chiefly by optimism over improved regulations under Trump. But the prospect of Trump imposing more tariffs on U.S. trading partners soured risk appetite.
Risk sentiment rattled by Trump tariff threat
Trump said he will impose a 10% import tariff on China and a 25% import tariff on Canada and Mexico to curb illegal immigration and illicit drugs flowing into the U.S.
His comments sparked fears of a renewed trade war within the world’s biggest economies, which bodes poorly for growth.
Broader risk-driven markets retreated after Trump’s threat, while the dollar rose sharply and came back in sight of a two-year high touched last week.
Trump has vowed to impose steep tariffs on China and other major U.S. trading partners, which could weigh on global growth and dent risk-driven assets in the coming years.
Trump crypto policies in focus
Crypto markets were also awaiting more cues on just what Trump’s policies will entail for the sector.
Trump had campaigned on a pro-crypto platform, promising to make America the crypto capital of the world. His cabinet picks for the Treasury Secretary and Commerce Secretary roles both hold pro-crypto views.
But markets were now waiting to see tangible policies from Trump, when he takes office in January.
Weakness in Bitcoin spilled over into other crypto and crypto-adjacent assets this week. MicroStrategy Incorporated (NASDAQ:MSTR), the world’s biggest corporate holder of Bitcoin, tumbled from record highs over the past three sessions.
The firm had last week purchased over $5 billion in Bitcoin, a recent filing showed.
Crypto price today: altcoins track Bitcoin losses
Broader crypto prices retreated on Tuesday, with most major altcoins tracking Bitcoin lower.
World no.2 crypto Ethereum was an exception, rising marginally to $3,242.17.
XRP fell 1.4% after strong gains last week, especially after U.S. Securities and Exchange Commission Chair Gary Gensler said he will step down in January.
Solana, Cardano and Polygon fell between 1.9% and 6.3%, while among meme tokens, Dogecoin lost 4.2%.