Bitcoin prices found stability on Monday, trading at $104,640.3 by 01:45 ET (05:45 GMT) after a volatile weekend saw the cryptocurrency dip from late-May highs. The world’s largest digital asset had surged past $111,000 last month, but recent price action reflects broader market unease over global trade tensions and heightened tariffs.
Exchange-traded fund (ETF) data revealed that institutional investors offloaded Bitcoin in the final days of May, contributing to the pullback. Despite the recent slump, Bitcoin posted an impressive 11% gain for the month of May, underpinned by optimism around potential U.S. crypto regulatory reforms.
- Bitcoin highlights:
- Current price: $104,640.3
- May high: Over $111,000
- May gain: +11%
Trade Tensions Shake Investor Confidence
The downturn in Bitcoin followed broader declines across risk assets, driven by mounting concerns over U.S.-China trade relations. President Donald Trump accused China of violating a trade deal signed in mid-May, while Beijing refuted the allegations and pledged to defend its interests.
These tensions escalated as the U.S. administration admitted to stalled trade talks, further dampening hopes for a resolution. In a separate move over the weekend, Trump announced a plan to double tariffs on steel and aluminum imports to 50%, a decision that could weigh heavily on the U.S. economy.
While trade tariffs have limited direct impact on crypto markets, they heavily influence investor sentiment. The highly speculative nature of Bitcoin and other cryptocurrencies often aligns their movements with those of riskier assets, including technology stocks.
- Trade tensions impact:
- Increased market volatility
- Heightened investor caution
- Pressure on risk assets, including crypto
Altcoins Mirror Bitcoin’s Downturn
Broader crypto markets mirrored Bitcoin’s subdued performance. Ether, the second-largest cryptocurrency by market capitalization, slipped 1.1% to $2,491.96. XRP fell 0.2% to $2.1670.
Other notable moves in the crypto space included:
- Cardano (ADA): Down 0.3%
- Solana (SOL): Down 0.1%
- Polygon (MATIC): Down 1.6%
- $TRUMP token: Down 0.7%
- Dogecoin (DOGE): Down 0.1%
Despite recent turbulence, Bitcoin’s long-term outlook remains influenced by broader regulatory developments and macroeconomic factors. As the market digests trade and tariff headlines, crypto traders will likely continue watching for signals from both Washington and Beijing.